Strategic HRM Plan for Standard Chartered Bank Limited (Bangladesh)

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CHAPTER ONE: Introduction to the Project

1.1 IntroductionIn this chapter the key factors and the key driving forces will be monitored and discussed for the

advanced understandings of the present condition of SCB in financial market of Bangladesh they

are playing in. Motivating the analysis to reveal exact scenario can be shown exactly in this

chapter for ensuring the quality of the key players in this regard.

Figure 1 Summarized factors explained later part of this chapter

Firstly, the aim and the rationale will prove the report structure and the report objectives in this

part. The rationality of the report is always based on the factors influencing the SCB’s activities

and their objectives in this regards. In the later part, the discussion will carry to show the

relationship how the data have been gathered to analyze the key issues of this report. Lastly the

whole report structure will be shown in this part to get through the summarized way of the

structure based on the activities at SCB.

© 2007 Syed Belal Reza

1.2 Aim and Rationale

1.3 Methodology

1.4 Report Structure

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1.2 Aim and Rationale of the ProjectThe Standard Chartered Bank PLC is an international banking group that is incorporated in the

United Kingdom, with its headquarters in London. The group focuses its activities in Asia,

Africa and the Middle East and its operation is segmented under six regions: UK & US, Middle

East and South Asia (MESA), South East Asia, North East Asia, India and Africa. To investigate

the internal ways of communication inside the SCB to meet the goal of the project within the

short time reveling some information collected using our learned techniques.

Human resource planning is the process (including forecasting, developing, implementing and

controlling) by which a firm ensures that it has the right number of people at the right places, at

the right time doing things which are commercially more useful. It is a systematic process for

setting policies governing the acquisition, use and disposition of Human Resources in order to

achieve organizational objectives. It emphasizes on employees as assets instead of as costs.

Figure 2 Generalized HR activities in SCB

To keep up with the human resource planning requirements, Standard Chartered Bank maintains

a HRIS (Human Resource Information System) called the “People Soft” which is maintained in

Singapore. This was another important issue for us to examine SCB in this regard.


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1.3 MethodologySample Information

Samples are collected from the corporate client of SCB’s Financial Institution Department. Here,

the samples had been picked up on a judgmental basis. For the organization part, much

information had been collected from different published articles, journals, brochures and web

sites. All the information incorporated in this report has been collected both from the primary

Approach:

The report is based on both primary and secondary research. The secondary research provided

the main input for the report. This provided a theoretical basis of the report. The primary

research was done to interlink between different concepts & processes of risk assessment.

Sources:

PRIMARY SOURCE OF DATA

Collecting data directly from the practical field is called primary source of data. The method that

was used to collect the primary data are as follows:

OBSERVATION METHOD:

Observation method may be defined as systematic viewing according to concise Oxford

Dictionary “accurate watching, nothing of phenomena as they occur in nature with regard to

cause and effect and mutual relationship”. I have observed many of the activities of Cash

Management departments and Financial Institution Department.

INTERVIEW METHOD:

The face-to-face interview was taken, where one person-the interviewer, asks the respondent (in

my case, “the clients”), questions designed to obtained answer pertinent to research problems. In


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order to get the real information and data about the Financial Institution Department’s Services,

various customers was interviewed directly.

OTHER PRIMARY SOURCES ARE:

Discussion with officials of SCB

Face to face conversation with the clients.

Discussions with customers over the telephone & responding to their query.

Secondary Sources of Data

The secondary data has been collected from the MIS of Standard Chartered Bank. To clarify

different conceptual matters, internet and different articles published in the journals & magazines

have been used.

Secondary Sources are:

Annual Publication of Export Promotion Bureau

Annual Reports of SCB

Other published documents of SCB.

Periodic Bulletins published by the Bangladesh Bank.

Synopsis of the Bangladesh Institute of Bank Management (BIBM).

Relevant Standard Chartered Bank paper and published documents

Bank’s other published information.

Some textbooks and Internet.

Data Collection:

Both secondary and primary data are used for preparing this report. But the research was mainly

based on the clients’ survey. Information was collected directly from the customers who are


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directly dealing with the Standard Chartered Bank through Cash Management and Financial

Institution Department. Printed questionnaires and personal interviews are treated as the main

instruments for data collection. In many times, the telephonic interview was handy for collecting

data.

Data analysis:

Usage for methodology here refers to research or to the specific analysis techniques. This also

refers to anything and everything that can be encapsulated for a discipline or a series of

processes, activities and tasks. Examples of this are business development, project management

and business process fields. This use of the term is typified by the outline who, what, where,

when, and why. In the documentation of the processes that make up the discipline, that is being

supported by "this" methodology, that is where we would find the "methods" or processes here.


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1.4 Report StructureChapter One: Formalities based on the issues relying on the essentiality of the project and its

coverage through the managerial context to reveal the information beneath the company’s cover.

Here the revealing information would be monitored and be mentored to get through the

situations through which we have gone and the processes and activity list on which we have

relied to get the benefit of it. Also the minimizing factors to summarize the report are also based

on some issues. These have been presented here to get through the monitoring the evolutionary

methods of the report to examine the sample company (SCB) and its formulas to maintain the

company goal and objectives here.

Chapter Two: Examining intervening conditions is concerned with the overall purpose and

scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily

influenced by investors in the business and acts to guide strategic decision-making throughout

the business. Corporate strategy is often stated explicitly in a "mission statement".

Determining the Key Performance Indicators (KPIs) is concerned more with how a business

competes successfully in a particular market. It concerns strategic decisions about choice of

products, meeting needs of customers, gaining advantage over competitors, exploiting or creating

new opportunities etc.

Also analyzing Key Success Factors (KSFs) is concerned with how each part of the business is

organized to deliver the corporate and business-unit level strategic direction. Operational strategy

therefore focuses on issues of resources, processes, people etc.

Analysis of the Strategic implications deals with the basic measurements stating the opportunity

based on the strategic goals and objectives. Finally closing with F/D analysis to be determiner.


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Chapter Three: This chapter will be dealing with the successes measures to take decisions for

benefiting the organization based on the strategic issues to the customized locations in SCB.

Communicating with strategies first and then dealing the strategic actions to take measurements

based on the issues of SCB in this key goal and issue.

Chapter Four: How to implement the key decisions in a sustainable way to get through the

measuring states will be discussed in this chapter to gain the competitive advantages over the

competitors on some specific issues to meet the demanding goals of the present condition of the

market and its surroundings.

Chapter Five: Based on the positive inputs and outputs of the strategic planning may be a tool

for effectively plotting the direction of a company; however, strategic planning itself cannot

foretell exactly how the market will evolve and what issues will surface in the coming days in

order to plan organizational strategy. Therefore, strategic innovation and tinkering with the

'strategic plan' have to be a cornerstone strategy for an organization to survive the turbulent

business climate.


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CHPATER TWO:Results

2.1 Introduction

Figure 3: Process of Finding Results in Chapter 2

When developing strategies, analysis of the organization and its environment as it is at the

moment and how it may develop in the future, is important. The analysis has to be executed at an

internal level as well as an external level to identify all opportunities and threats of the external

environment as well as the strengths and weaknesses of the organizations.

Figure 4 Formulating Strategy Based on External and Internal Learning


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2.2 Strategic Analysis2.2.1 Analysis of the Intervening Conditions

A representative of Standard Chartered Bank was asked to rate several intervening conditions in

terms of the probability of impact (as in high, medium or low) and the state of occurrence (i.e.

present, potential or uncertain) and the results were plotted in matrices. The intervening

conditions that are relevant for SCB are the ones which fall in the present-high, present- medium,

present-low, potential-high, and finally potential-medium categories and present-high being the

intervening conditions with the highest degree of priority.

1. INTERVENING CONDITIONS:

a. Please rate the following factors in accordance with their status of occurrence:

Economic:

Present Potential Uncertain

1. Change in inflation 3 2 1

2. Change in exchange rates 3 2 1

3. Change in interest rates 3 2 1

4. Change in GNP 3 2 1

5. Change in unemployment rate 3 2 1

Technological:


1. Advancements in technology 3 2 1

2. Growth in R & D in the industry 3 2 1


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GOVERNMENT/POLITICAL/LEGAL:


1. Anti-trust legislations 3 2 1

2. Export/import policies 3 2 1

3. Political unrest 3 2 1

CUSTOMERS:


1. Change in choice criteria 3 2 1

2. Change in relative importance of choice criteria 3 2 1

3. Change in preferences 3 2 1

4. Informed decision making 3 2 1


COMPETITORS:


1. Increase/decrease in number of competitors 3 2 1

2. Adoption of new technologies 3 2 1

3. Change in investment s in marketing/production

initiatives

3 2 1

RESOURCES AND CAPABILITIES:


1. Existence of core competence 3 2 1

2. Adequacy of skills and resources

(HR/Marketing/Distribution/Operations/R&D/Finance

)

3 2 1


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3. Employee Relations 3 2 1

4. HRD Initiatives 3 2 1

b. Please rate the following factors in accordance with their Probability of Impact:

ECONOMIC:

High Medium Low

1. Change in inflation 3 2 1

2. Change in exchange rates 3 2 1

3. Change in interest rates 3 2 1

4. Change in GNP 3 2 1

Technological:

High Medium Low

1. Advancements in technology 3 2 1

2. Growth in R & D in the industry 3 2 1

GOVERNMENT/POLITICAL/LEGAL:

High Medium Low

1. Anti-trust legislations 3 2 1

2. Export/import policies 3 2 1

3. Political unrest 3 2 1

CUSTOMERS:

High Medium Low


2. Change in relative importance of choice criteria 3 2 1


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3. Change in preferences 3 2 1

4. Informed decision making 3 2 1


COMPETITORS:

High Medium Low

1. Increase/decrease in number of competitors 3 2 1

2. Adoption of new technologies 3 2 1

3. Change in investment s in marketing/production

initiatives

3 2 1

RESOURCES AND CAPABILITIES:

High Medium Low

1. Existence of core competence 3 2 1

2. Adequacy of skills and resources

(HR/Marketing/Distribution/Operations/R&D/Finance

)

3 2 1

3. Employee Relations 3 2 1

4. HRD Initiatives 3 2 1


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Technology

Status of Occurrence

Pro

babi

lity

of I

mpa

ctPresent Potential Uncertain

High

Advancement in

IT

Growth in R&D

Medium

Low

Figure 5 SCB’s Technology as intervening condition

In the technology aspect SCB is sound prepared and is usually way ahead of most the banking

industry players as they came fully armed with the very latest technology which helped them

distribute their products more effectively and efficiently. Therefore both advance in technology

and growth in R & D help SCB to serve its customer as a result the impact are also high.

Standard Chartered Bank wants to provide technologically advanced services for the

convenience of the customers. They were the first bank in the country to introduce Money link

ATM cards. Now they have introduced hone-Banking; Internet banking and SMS-banking

services as well.

ECONOMIC:


Pro

babi

lity

of I

mpa

ct


High

Change in inflationChange n exchange ratesChange in interest ratesChange in unemployment rate

Change in GNP

Medium

Low


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Figure 6 Economy as intervening Condition

Economic factors like inflation, exchange rates, GNP and unemployment rate could have.

significant affect on SCB’s operating profits. The status of occurrence of all the points is present

and the probability of impact is high. For instance, a high rise in inflation rates would mean that

the cost of goods is increasing as a result people have less money to save in bank. This would

decrease the profit margin of SCB. Exchange rates would play a major role.

Government/Political/Legal


Pro

babi

lity

of I

mpa

ct


High

Anti Trust Legislations

Export/Import Policies

Political Unrest

Medium

Low

Figure 7 Political Environment as Intervening Condition

The political environment is actually a serious issue regarding Standard Chartered Bank’s

business Operations. Previously Bangladesh is being governed by the army backed caretaker

government before this government took over the power; Bangladesh saw unprecedented

political unrest for quite some period. These types of political calamities country’s reputation as

a whole and subsequently foreign authorities become reluctant to inspect the banking industry.

However, because of the political issues the probability of impact is also high.


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Customers


Pro

babi

lity

of I

mpa

ct

PresentPotentia

lUncertain

High

Change in choice criteria

Change in relative importance of

choice criteria

Change in preferences

Informed decision making

Medium

Low

Figure 8 Customers as Intervening Conditions

For the customers quality had meaning to them in terms of quantity, transparency, stability,

safety, efficacy and presentation of the product or service. Lately there has been a change in the

customers’ definition of quality i.e. there has been a change in their choice criteria j relative

importance of choice criteria as well. Today’s sophisticated customers make informed decisions

based on their choice criteria. Today’s “new” definition of quality includes the quality of the

service process. In addition the customers want to see friendly and fast processes in service.


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Competitors


Pro

babi

lity

of I

mpa

ct

PresentPotentia

lUncertain

High

Increase/decrease in number of

competitors

Adoption of new technologies

Change in investment s in

Marketing/production initiatives

Medium

Low

Figure 9 Competitors as Intervening Condition

Concentrate operations in those activities that have born direct impact on the communities of the

countries and help the country and its economy prosper and in the same time earn profit in

ethical way. SCB tries to implement these strategies by –“ensuring a proper agglomeration of

good corporate governance and sound human resources development to build a solid workforce”.

Resource and Capabilities


Pro

babi

lity

of I

mpa

ct


High

Existence of core competence

Adequacy of skills and resources

(HR/Marketing/Distribution/

Operations/R&D/Finance)

Medium Employe

e

Relations

HRD


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Initiative

s

Low

Figure 10 Resources & Capabilities as Intervening Condition

Balanced growth to drive performance using resources and capabilities: Standard Chartered’s

consistent performance is supported by a strategy of organic growth and geographic

diversification. Carefully selected acquisitions are helping the bank to grow in key markets such

as India, South Korea, Indonesia, Pakistan and Taiwan.

2.2.2 Determining the Key Performance Indicators

The success measures or performance indicators are benchmarks against which firm’s actual

performance is evaluated. These measures or indices, in fact, allow the firm to determine if and

the extent to which its objectives have been met There are many factors that firms take account

of when determining success measures. Shareholders’ expectations, managers’ willingness to

satisfies, competitive considerations, industry standards, customer factors, and internal resources

and capabilities are some of these factors. “Most firms use the SMART (Specific, Measurable,

Attainable, Realistic and Time-Bound) principle to set objectives”, (Moniruzzaman, 2006).

Objective type: Growth

Objective level: Sales-Tk 9,443 million

Change in sales- 25%

Measures:1. Sales:

Sales involve the total revenue imitative from selling of the services of Standard Chartered Bank

Standard Chartered Bank is expecting sales of Tk 9,443 million.


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2. Change in sales:

Percentage change in sales is the percentage change in sales form one year to another. From year

2009 to year 2010 Standard Chartered Bank is expecting a growth (positive change) of 25%.


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Objective type: Profitability

Objective level: Profit-Tk 8,026.55 million

Profit as Percentage of Sales-85%

Contribution Margin-Tk 5,329 million

ROI-66 .17%

/

Measures:1. Profit:

Profit generally is the making of gain in business activity of the benefit of the owner of the

business. Profits are generally shown in the profit and Loss Account of an Annual Report of an

organization. From Net sales receivables and budgeting Cost of goods sold we get Gross profit

From the Gross profit we deduct operating expenses like administrative expenses and Selling,

marketing and distribution expenses. Then we get profit from operations. For year 2010 Standard

Chartered Bank is expecting to get profit of Tk. 8,026.55 million.

2. Profit as percentage of sales:

Profit as percentage of sales for Standard Chartered Bank Limited will be:

= Profit/Total sales

=8,026.55 /9,443 million

=0.85

=85%

So, Standard Chartered Bank wants 85% profit as percentage of sales for year 2010.


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3. Contribution margin:

Contribution margin is the unit sales price deducted by the unit variable cost.

Contribution margin = Unit-sales price — Unit variable cost

Standard Chartered Bank’s contribution margin is Tk 5,329 million.

4. ROI

Return on Investment (ROI) is the ratio of money gained or lost (realized or unrealized) on an

investment relative to the amount of money invested. The amount of money gained or lost may

be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be

referred to as the asset, capital1 principal or the cost basis of the investment ROI is usually

expressed as a percentage rather than a fraction. ROI does not indicate how long an investment is

held. Standard Chartered Bank does use Return on investment. Standard Chartered Bank expects

Return on Investment (ROI) will be 66 .17% for year 2010.

Objective type: Contribution to Customers

Objective level: Product quality-premiere service

Customer Satisfaction Level-High

Measures:1. Product/service quality:

The service or the product quality of Standard Chartered Bank is premiere. They believe in

providing quality premiere service for the customers. Premiere service is the sign of an important

performance indicator.


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2. Customer Satisfaction:

Satisfaction can be used as another measure of customer centered objectives. The satisfaction

level of Standard Chartered Bank is high which a good sign is for SCB and an important

performance indicator. Standard chartered bank has made use of different means of getting

feedback from customers so as to understand their level of satisfaction, based on which they can

take the necessary actions to ensure customer satisfaction first.

Objective type: Contribution to Employees

Objective level: Wage rates-15%

HR development- Training, Structural learning and mentoring

Promotions- 8%

Turnover-12%

Measures:1. Wage Rates:

The wage rate of Standard Chartered Bank is 15% annual increase after interim and final,

benefits- fringe benefits (after starting from level-5).

2. HR development

Standard Chartered Bank HR development includes training, structural learning and mentoring.

3. Promotion

Standard Chartered Bank targets 8% promotions for employees in year 2010.

4. Turnover

Standard Chartered Bank desires 12% change (12% changes) in turnover far year 2010.


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Objective Type: Contribution to the Society

Objective Level: Taka contribution to charities or

community institution— no information was

available.

Growth in employment-4%

Measure:1. Taka contribution to charities or community institution

No information was available for contribution to charity or community institution of Standard

Chartered Bank.

2. Growth in employment

Standard Chartered Bank is expecting a positive growth of 4% in employment in year 2010.

Objective type: Competitive Objectives

Objective level: Market share-23%

Brand Awareness- High

Brand Preference- High

Measures1. Market share

Market share of Standard Chartered Bank is 23% for year 2010.

2. Awareness

Every company wants to increase awareness of its brand among the customers. Standard

Chartered Bank’s level of awareness is very high.


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3. Brand Preference

Brand preference is another step closer to complete a purchase for a brand. Standard Chartered

Bank uses preference which is high.


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Rating of the objectives in terms of successfulnessCriteria A Financial Failure A Financial Success

(Less than measures in P-1) (Greater than the measures in P-1)

Profitability

-5 -4 -3 -2 -1 0 1 2 3 4 5

Relative to competing firms

Far Less

Far Greater

Profits:

-5 -4 -3 -2 -1 0 1 2 3 4 5

Sales/Revenues:

-5 -4 -3 -2 -1 0 1 2 3 4 5

Market Shares:

-5 -4 -3 -2 -1 0 1 2 3 4 5

Customers

Far Less

Far Greater

Awareness:

-5 -4 -3 -2 -1 0 1 2 3 4 5

Liking:

-5 -4 -3 -2 -1 0 1 2 3 4 5

Preference:

-5 -4 -3 -2 -1 0 1 2 3 4 5


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Product/Service

Far Less

Far Greater

Quantity

-5 -4 -3 -2 -1 0 1 2 3 4 5

Quality

-5 -4 -3 -2 -1 0 1 2 3 4 5

From the above ratings we can conclude that Standard Chartered Bank’s profit, sales, market

share, awareness, liking, preference, quality, quantity have middle far greater rating. This shows

that Standard Chartered Bank has positive financial success relative to competing firms.


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Conventional financial status analysis Vs shareholder valueAnalysis:

Shareholder Value Analysis (SVA) is one of a number of methods being used as substitutes for

traditional business measurements. SVA calculates the value of a company by looking at the

returns it gives to shareholders, and is based on the view that the objective of company directors

is to maximize the wealth of the company’s shareholders. This checklist introduces the financial

calculations involved in carrying out SVA and advises on its implementation.

In recent years, traditional financial methods for calculating the value of a business have been

criticized for being either too short-term or measuring only what has happened in the past

Business decisions based on traditional accounting methods of value, such as earnings per share,

growth in profits or return on equity, are increasingly seen as being flawed for these reasons.

SVA takes a longer-term view, and is about measuring and managing cash flow over time.

Definition

SVA is a method of financial analysis which measures shareholder value. This is done by

estimating the total net value of a company and dividing this figure by the value of shares. The

result is the shareholder value of the company. The fundamental principle underlying concepts of

shareholder value is that a company adds value for its shareholders only when equity returns

exceed equity costs. Once the amount of value has been calculated, targets for improvement can

be set and shareholder value can be used as a measure for managing performance.


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Advantages of Shareholder-Value Analysis:

It provides a long-term financial view on which to base strategic decisions.

It provides a universal approach that is not subject to the particular accounting policies

that are adopted. It is therefore internationally applicable and can be used across sectors.

It forces the organization to focus’ on the future and its customers, in particular the value

of future cash flows. Traditional measures are cost-based, bearing little relation to the

economic income generated during a period.

Disadvantages of Shareholder Value Analysis:

Estimation of future cash flows, a key component of SVA, can be extremely difficult to

complete accurately. This can lead to incorrect or misleading figures forming the basis

for strategic decisions.

Development and implementation of a system can be long and complex

Communication of the approach to managers can be difficult

Management of shareholder value requires more complete information than traditional

measures.


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Action Checklist1. Understand and calculate the organization value

It is important when planning to adopt shareholder value as a significant financial objective that

you understand the implications and best approach for our business. This can be achieves by

planning the approach first with professional advisers, such as accountants or consultants who

specialize in this area.

A company’s shareholders value can be calculated as follows:

Shareholders value = Total business value - Debt

In other words, the value given to shareholders is found by subtracting the market value of any

debts owed to the company from the total value of the company.

The total business value as has three main components:

Present value of future cash flow during a planned period.

Residual value of future cash flows from a period beyond the planned period.

Weighted average cost of capital

This is presented in the following equation:

Total business value = Present Value of Future Cash Flows + Residual Value of Future Cash

Flow Weighted Average Cost of Capital.

If the result of this equation is greater than one than the company is worth more than the invested

Capital and value is being created.


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Future Cash Flow

Future cash flows are affected by growth, returns and returns these aspects can e explained by

seven key-value-drivers, as described by Alfred Rappaport, that must be manages in order to

maximize shareholder value; sales growth rate; operating profit margin; income tax rate; working

capital investment; fixed capital investment; cost of capital and value growth duration.

Residual value

The residual value is an important figure, which represents cash flows arising after the normal

planning period. It has been estimated that much as two thirds of the value of a business can be

attributed to cash flows arising after the normal planning period (usually five to ten years).

Viewed another way, only one third of the value of a business results from cash flows arising

during the normal planning period.

Weighted average cost of capital (WACC):

WACC consists of equity added to the cost of debt; and its purpose is to express the return that a

company must earn if it to justify the financial resources that it uses. The WACC therefore

expresses the opportunity cost of the assets in use. WACC is entirely market driven—if the

assets cannot earn the required return then the investors will withdraw their funds from the

business.


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2. Gain top management commitment:

This is to asses’ business performance a base SVA on the belief that creation and maximization

of shareholder value-is the most important measure. This overriding objective must be accepted

by top managers for it to be achieved and take root in the organization. There should also be an

acceptance that traditional measure and approaches may full short of achieving this objective.

3. Identify the key value drivers of the organization and set targets:

Unlocking shareholder value is about maxim sing cash flows, and to achieve this key value

driver of the business need to be identified (the seven value drivers are listed in point 1 above).

To take one example, improvement in the operating profit margin will be affected by sales and

expenses; each of these in turn will be driven by a number of other factors (e.g. distribution or

selling), which are themselves subject to other influences.

This analysis of value drivers links financial and operational objectives, and provides a

framework for:

Setting targets for performance

Assigning responsibility to individuals managers

Reviewing the financial performance of the business (and benchmarking against

competitors)

Developing strategic plans—using SVA, it is possible to measure the incremental change

in shareholder value arising from each strategy, by calculating the difference between the

present value of future cash flows before and after implementation of the strategy.

Identifying the key factor is influencing each value divert is invariably a process of trial

and error. However, this process is fundamental to managing, controlling and making

improvements in the business, which will lead to improved cash flows.


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4. Communicate the approach and train staff

Managers need to understand the broad nature of creating shareholder value, particularly when

appraising potential projects, but the technical aspects of SVA are unlikely to be of concern.

Managers need to understand the importance of identifying, controlling and improving the

performance of the value drivers, and the key factors influencing them.

Adoption of SVA and setting of new targets will probably challenge manager’ existing habits

and approaches, and as a result may cause resistance. Previous approaches will need to be

reevaluated and possibly discarded favor of new targets.

Unlocking shareholder value is essentially a change process, and it requires line manager (who

are invariably the people making the key operational decisions) to e fully trained.

It is also important when implementing an SVA approach to achieve early, high profile success.

As with any change process, early successes will demonstrate the value of the new approach,

highlighting the benefits and winning over skeptics.

5. Change the organization’s information systems to monitor and measure progress:

The organization’s financial reporting systems, and information systems in general, will

probably-need to be revised when SVA in implemented. Conventional reporting systems are

unlikely to provide all of the information required, or to provide it in the most effective format In

order to implement SVA and unlock shareholders value, managers must be able to regularly

measure and monitor information concerning the key value drivers and targets that have been set


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6. Change the financial incentive schemes employed for managers:

One key area to address is that of incentive schemes. For senior managers incentives should

reflect the need to increase shareholder value over realistic time periods, rather than focusing

simply on short term profit growth of earnings per share. Incentives and bonuses for the line

managers should reflect their success in exerting a positive influence over the value drivers that

they control.

7. Monitor and review progress and refine targets

Creation of sustained value will require permanent monitoring, appraisals, performance revive,

management meetings and key decisions will all need to focus on the progress that has been

achieved, and the action that is required to continue building shareholder value. Failure to

emphasize value creation can result in mangers focusing on targets which are no longer relevant,

or which are actually harmful to the long term value of the business.


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2.2.3 Determining the Key Success Factors

Key success factors (KSFs) are determined based on the relative strengths of relationships

between the key issues and the KPIs. For a relatively new firm, up to 20 KSFs are acceptable,

whilst a number between 12 and 15 is recommended for firms that have been in business over

the past three years or longer. (Moniruzzaman, 2006)

Major Steps in Measuring KSFs:

1. Identifying KSFs

2. Rank Order of KSFs

3. Assigning Points (Weights) to KSFs

1. Identifying KSFs1. Promotional activities (A)

2. Assigning targets to salespeople (B)

3. Offering a very wide range of innovative products (C)

4. Introducing more convenient and comfortable means of banking (D)

5. Valuing customer who make more use of SCB’s products and services (E)

6. Introducing the concept of “Customer Loyalty Week” (F)

7. Global Consumer Finance (G)

8. Personal Banking (H)

9. HR Management (I)


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2. Rank Order of KSFsSelected KSFs (the evoked set of KSFs) are then ordered in accordance with their relative

importance. The strategist uses a device that is used to mark order the KSFs. In fact; the

correlation coefficients between the KPIs and the issues are used as benchmarks to rank order.

However, the strategist may additionally take account of the opinions of managers of the firm to

draw up a final order. (Moniruzzasman, 2006).

Ranking Order

1. A

2. B

3. C

4. D

5. E

6. F

7. G

8. H

9. I


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3. Assigning Weight to KSFsEach KSF is assigned a weight in the form of percentages (e.g. 30%, 20%) or point (e.g. 0.3, 0.2)

to indicate its relative importance or how important it is in relation to other KSFs. The total must

equal 100 or 1 or so forth. (Moniruzzaman, 2006)

KSF Weight (%)

1. Promotional activities (A) 8

2. Assigning targets to salespeople (B) 12

3. Offering a very wide range of innovative products (C) 10

4. Introducing more convenient and comfortable means of banking

(D)9

5. Valuing customer who make more use of SCB’s products and

services (E)6

6. Introducing the concept of “Customer Loyalty Week” (F) 5

7. Global Consumer Finance (G) 10

8. Personal Banking (H) 7

9. HR Management (I) 5

Total 100 (%)


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2.2.4 F/D Analysis

KSF Weight Score Weighted Score

F/D

1. Promotional activities 0.1 5 0.5 F

2. Assigning targets to salespeople 0.12 5 0.6 F

3. Offering a very wide range of innovative products 0.1 4 0.4 D

4. Introducing more convenient and comfortable

means of banking

0.12 4 0.48

F

5. Valuing customer who make more use of SCB’s

products and services

0.09 5 0.45

F

6. Introducing the concept of “Customer Loyalty Week” 0.05 5 0.25 D

7. Global Consumer Finance 0.1 3 0.3 D

8. HR Management 0.17 2 0.34 D

9. Personal Banking 0.15 3 0.45 F

Total 1.0 3.77

Mean 0.42

Table 1 : F/D Analysis


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1. Absolute F/Ds1. Rate each KSF (5 to 10) with 5 being outstanding and 1 as poor

2. For each KSF Multiply the score by its weight to obtain the weighted score

3. Determine the mean score

4. Label the KSFs above theme a score as F

5. Label the KSFs below theme a score as D

Here, the total weighted score for the KSF is 3.77, and the mean score is 0.42

If the weighted average score is greater than 0.42, then it will be regarded as Favorable (F) and if

the score is below 0.42 then it will be regarded as Detrimental (D). As no KSF has score of 0.42

(average score), so no KSF has the probability of becoming either F or D.

The absolute total score (3.77) clearly indicates that the firm is performing well overall.

However, individual assessment reveals that it has three detrimental (KSFs 3, 6, 7 and 8) that

need closer investigation. The absolute F/D analysis has a shortcoming since it is not conducted

in a comparative perspective and thus, does not identi1y firm’s performance across the KSFs in

relation to its major competitors. (Moniruzzaman, 2006)

Calculation for International standard in SCB:

We assign weight in following way,

If importance of KSF is 5 then weight is 0.45

If importance of KSF is 4 then weight is 0.28


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For a KSF weight 0.09 and Score 5

Weighted Score = 0.09 X 5=0.45 (>0.42)

F/D result: F (Favorable)

After calculating and observing the KSFs the Favorable(s) (F) are:

Promotional activities

Offering a very wide range of innovative products

Introducing more convenient and comfortable means of banking

Global Consumer Finance

Personal Banking

Global Institutional banking

Global Electronic Banking

Table 2 Favorable Factors

Assigning targets to salespeople

Valuing customer who make more use of SCB’s products and services

Introducing the concept of “Customer Loyalty Week”

HR Management

International Trade Management

Global Cash Management

Table 3 Detrimental Factors


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ExplanationsPromotional activities:

Standard Chartered Bank is trying to achieve their objective of increasing their market share by

engaging in promotional activities. Example: They are offering free shopping worth Tk 2,000

from Agora to customers who will be able to refer at least 5 new customers to SCB.

Assigning targets to salespeople:

The salespeople of Standard Chartered Bank are assigned targets based on their desired increase

in market share. Salespeople are paid based on the number of sales they can make. If they are

unable to achieve their target, they are not paid. This acts as a negative motivational factor that is

a driving force for the salespeople.

Offering a very wide range of innovative products:

Standard Chartered Bank wants to establish themselves as a strong brand name in the minds of

customers. In order to achieve this objective they are continuously coming up with innovative

products such as night banking, 24 hours ATM banking, 24 hours Phone banking, Internet

banking, Sms banking, platinum credit cards having a maximum credit limit of BDT 1,000,000

and many more.

Introducing more convenient and comfortable means of banking:

The innovative products offered by SCB have already made banking more convenient for

customers. They have introduced token systems for customers who want to engage remittances.


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Customers no longer have to wait for long hours in the queue; they can sit making themselves

comfortable and wait for their token number to appear on the screen before they go to the

counter.

Valuing customers who make more use of SCB’s products and services:

Standard Chartered Bank has made use of promotional strategies such as providing customers

with free gifts like perfumes, electronic products and shopping vouchers based on their use of

credit card services. For each 50 taka of credit, customers earn 1 point. They then can get free

gifts based on the number of points they have made. They also offer free gifts to customers who

make extensive use of ATM cards.

Introducing the concept of “Customer Loyalty Week”:

SCB has introduced the concept of “Customer Loyalty Week”, a week when loyal customers are

welcomed with pleasant gestures such as flowers or chocolates. They are also given the

opportunity to express their opinions about the service quality of Standard Chartered Bank by

writing them down and dropping them in the suggestion box. The management of Standard

Chartered Bank then takes actions based on customers’ suggestions, to raise and restore customer

satisfaction.

Global Consumer Finance:

There are seventy-six branches and finance centers under this division in about the countries with

a workforce of 1616 employees. Some of the services provided by these divisions are unsecured

personal loans, credit cards and retail store cards, vehicle related leases, etc.


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Personal Banking:

There are about 410 branches with a workforce of 12,000 employees working under this division

in 28 countries. Some of the services provided by this division are various kinds of insurance and

loans, account maintenance, travelers’ cheques and money exchange etc.

HR Management

There are 350 branches under this division. This division provides services in 42 countries. The

services provided by this division are International Trade Management, Institutional banking,

Treasury, Custody and Cash Management.


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2.2.5 Phenomenon Model and F/D Analysis

The following pages analyze each of the favorable

and detrimental will be analyzed by applying the

phenomenon model. The use of the phenomenon

model would reveal information on the 5Ws and

the H.

Therefore, it would be possible to know the

following by conducting the analysis:

What the F/D actually is,

Why it has occurred and

Who and what resources are involved

What the context and intervening conditions

are

What the actua1 and desired outcomes, and

How an F should reinforced or how to

overcome a D

Therefore, this analysis aids the strategist in

deciding on the appropriate strategic and tactical

actions as well as ways to implement, and evaluate

and control these actions.


Everything is a

phenomenon, whatever

it is. People, animals,

materials, our life, our

mind, our body and its

components, insects,

events, incidents,

accidents, air, water,

pollution, breathing,

eating, food, drinks,

ozone, oxygen, boxing,

football, cricket, bats,

presidents, presidency,

parents, parenthood,

pregnancy, mortality,

birth, death,

understanding, not

understanding, problem

or opportunity, you

name it, the list does

never end.

(Moniruzzaman, 2006)

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1. Promotional Activities

Figure 11 Promotional Activities in Terms of Phenomenon Model


Intervening ConditionsMoney, Competitor, Resources, EconomyWhy?

To provide services in a better way

Who/What are Involved?Employees determined to serve, top Management

What Consequences?Expected: Inform about banking alwaysActual: Only during special promotion

What Happens?Increasing rate of money visitng customers in the bank.

How: Process?Dedicated Employees

ContextCustomers and its necessity to run business

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Promotional Activities

Standard Chartered Bank is trying to achieve their objective of increasing their market share by

engaging in promotional activities. Example: They are offering free shopping worth Tk 2,000

from Agora to customers who will be able to refer at least 5 new customers to SCB. Revenue

that SCB receives through conducting a transaction with another bank is the inbound business. It

provides a comprehensive payment, clearing, and trade services solutions to enable smooth

international trade and cross-border transactions. Pertaining to these reasons Inbound Business

unit has shown a significant and sustainable growth, since its inception in 2003. The segment

now contributes around 7% of overall WB revenue and enjoys 25% of overall market share.

Promotional Activities in terms of the Phenomenon Model

What: Achieve their objective of increasing their market share by engaging in promotional

activities.

Why: To attain the global value from the banking perspective minimizing the risk of non

informing the consumers in the long run.

Who: Promotional activities will incurred by these personnel:

1. The people

2. Big firms

3. Shareholder

4. Employee

5. Customers

6. Competitors

7. Other groups


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What Consequences Occurred: They are offering free shopping worth Tk 2,000 from Agora to

customers who will be able to refer at least 5 new customers to SCB. Wants to retain its

customers by making customers feel comfortable while they are at the banking premises. For this

reason the bank have arranged for adequate facilities.

How did it happen: Standard chartered bank has made use of different means of getting



What is the context: The underlying factor on SCB’s business mission is manifested by its five

values : “Responsive, International, Trustworthy, Responsive and Courageous.” These values are

considered to be the keys for its success. These values determine how the employees achieve

their goals, the way they work together and how it feels to be a part of the Standard Chartered

Bank group.

Intervening Conditions:

Money: Being courageous is about confidently doing what’s right. Often the task may seem

insurmountable but with courage and tenacity, the odds can be overcome. A truly courageous act

both inspires and builds character. At Standard Chartered Bank, it is recognized that they have an

impact on the economies, communities and on the environment in which they operate and there

lies a responsibility to address this impact.

Economic: SCB believes in the practice of Market-Oriented Strategic Planning, developing and

maintaining a viable fit between the organization’s objectives, skills and resources. The aim of

such approach is to shape and reshape the bank’s businesses and services so that they yield target

profits and growth. The strategic planning of SCB involves repeated cycles of corporate and


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business planning as well as divisional and product or marketing planning. The strategic

planning of SCB consists of two organizational levels.

Competitor: While SCB makes it a point to always strive to stay ahead in the game it does

however acknowledge that it is not the only big player in market. Therefore from a strategic

stance SCB is always bound of its main competitors’ actions in terms of adoption of new service

and their relative investments.

Resources: SCB’s most important core competence lies in its regular cost monitoring that tie

together, in a secret formula. Given the current saturated domestic market SCB wants to increase

its service capacity in order to increase its market share and continue growing as a countries

economy. To make this increased capacity SCB is investing its resources in making its service

facilities are continually upgraded with the latest in the technological revolution.

Performance:

Actual Achievements: The aim of such approach is to shape and reshape the bank’s businesses

and services so that they yield target profits and growth.

Desired Achievements: A truly courageous act both inspires and builds character. At Standard

Chartered Bank, it is recognized that they have an impact on the economies, communities and on

the environment in which they operate and there lies a responsibility to address this impact.


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Initiatives:

Figure 12 Aware consumers with promotional activities affecting banking outcome

Since the growth and profits of banking business largely depend upon the locations of branches

where large concentration of other businesses and industries are involved, SCB primarily focuses

on location-based strategy. Every year an overall profit target as well as individual targets for

each line of business (export, import, loans & advances etc) is set for each branch location by the

corporate bodies in collaboration with the regional heads and branch managers.

The concentration of businesses and lifestyles of the people are not the same in different

divisional areas. So, the strategies of the areas differ from one another; but they are designed

with distinctive local touch. The Branches Control & Inspection Division at the Head office

constantly monitors the progresses of all the areas and works along with Marketing and Outreach

Division in search for new location.


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2. Assigning targets to salespeople

Figure 13 Assigning Targets to Salespeople


Intervening ConditionsMoney, Economy, Employees

Why?Motivating the salespeople for better performance with same resources

Who/What are Involved?Employees, Top Management, HR Personnel

What Consequences?Expected: To retain all employees get through the target .Actual: Putting pressure on the eemployees to get the resultout

What Happens?Fixed targets are set to get the highest possible performance.

How: Process?Employees are assigned with targets to miimize the performance level indicators.

ContextPutting judgment to the employees with better performance

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Assigning Targets to Salespeople

The salespeople of Standard Chartered Bank are assigned targets based on their desired increase

in market share. Salespeople are paid based on the number of sales they can make. If they are

unable to achieve their target, they are not paid. This acts as a negative motivational factor that is

a driving force for the salespeople. Pertaining to these reasons Inbound Business unit has shown

a significant and sustainable growth, since its inception in 2003. The segment now contributes

around less than 10% of overall WB revenue and enjoys one forth of overall market share. It

provides a comprehensive payment, clearing, and trade services solutions to enable smooth

international trade and cross-border transactions.

Assigning Targets to Salespeople in terms of the Phenomenon Model

What: The salespeople of Standard Chartered Bank are assigned targets based on their desired

increase in market share.

Why: The people are routinely up skilled and empowered to be able to effectively respond to

customer needs.


1. Employee

2. Top Management

What Consequences Occurred: The business strategy of the Bank is to strengthen its

traditional lending in small retail business, following a conservative lending approach. But the

Bank’s major portion of the profit generates from its Corporate Banking.


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How did it happen: Building upon the base of trust and relationship in line with the

management approach of maintaining adequate loan quality, the bank has been able to create a

corporate client base in the large and medium scale industrial ventures.

What is the context: The STM is the person who heads the sales team in the branch. He needs

to achieve the set targets in terms of building assets and liabilities of the branch. He is the one to

leads the team to increase the customer base of the branch. He needs to will provide high service

quality to the customers of the bank and have to improvement of the Service quality levels of the

branch.


Money: Standard Chartered understands the working capital needs of a company and offers

Discounting of letter of credit at when a seller gets a deferred letter of credit from a buyer, the

seller may wants to get the money for acquiring goods in advance or production cost earlier than

the credit expires. At Standard Chartered Bank, it is recognized that they have an impact on the

economies, communities and on the environment in which they operate and there lies a

responsibility to address this impact. A truly courageous act both inspires and builds character.







Employees: There are 17 offices under this division and about 900 staff members in this

division, operates in fourteen countries and is headquartered in another country. Standard


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Chartered Equitor fulfils Standard Chartered Bank's strategic commitment to providing custody

and clearing services in greater regions. Standard Chartered Bank has one Asia's leading

custodians for over 40 years.

Performance:

Actual Achievements: Creating solid customer base on the basis investment in the bank to

retain the customer satisfaction towards the banking activities with SCB.

Desired Achievements: The salespeople of Standard Chartered Bank are assigned targets based

on their desired increase in market share. Salespeople are paid based on the number of sales they

can make.

Initiatives:

Standard Chartered Bank’s Financial Institution banking offers discounting of bills of

exchange/drafts that have been accepted by the letter of credit issuing bank under local letter of

credit, master export letter of credit. By this type of service Standard Chartered facilitates the

manufactures or suppliers to manage their cash flow more effectively and get access to bank easy

finance.

This is operational throughout the group and Standard Chartered Bank's core strength is trade

finance and services. With an experience of over 150 years, Standard Chartered Bank has

developed knowledge of trade finance, which is world class. Principle services to importers are

Import Letters of Credit; import Bills for Collection and Back-to-Back Letters of Credit

facilities. All are dependent on the employee’s performance at all circumstances.


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3. Offering a very wide range of innovative products


Intervening ConditionsExisting Offers, Money, Resources

Why?Improving banking services & quality of banking

Who/What are Involved?Employees, Top Management , Marketing People.

What Consequences?Expected: To attract the customers for more banling at SCB Actual: Customers chose to formulate packages

What Happens?Lucrative offers are given to the consumers to increase revenue

How: Process?Residing the values of products to attract the customers

ContextBanking Services

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Figure 14 Offering a Very Wide Range of Products (Phenomenon Model)

Offering a very wide range of innovative products

Standard Chartered Bank wants to establish themselves as a strong brand name in the minds of

customers. In order to achieve this objective they are continuously coming up with innovative

products such as night banking, 24 hours ATM banking, 24 hours Phone banking, Internet

banking, SMS banking, platinum credit cards having a maximum credit limit of BDT 1,000,000

and many more. With an experience of 150 years, the bank has a formidable efficiency in the

operational areas in which it operates. The bank has a mission to build and grow on its 150 years

of experience and the positive image that it has earned over the years. Since SCB as a bank

caters to the higher echelon of the society, its operational strategies relies on trust and confidence

building with the customers and offer them the highest sense of security and confidentiality.

Offering a very wide range of innovative products in terms of the Phenomenon

Model

What: For Strengthening Evoked Set Standard Chartered Bank wants to establish themselves as

a strong brand name in the minds of customers.

Why: The bank has a mission to build and grow on its one and half century of experience and

the positive image that it has earned over the years.

Who: Innovative Product Offerings by these personnel:

1. Employee

2. Customers

3. Competitors

What Consequences Occurred: Standard Chartered Bank wants to provide technologically

advanced services for the convenience of the customers. They were the first bank in the country


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to introduce Money link ATM cards. Now they have introduced Phone-Banking, internet

banking and SMS banking services as well.

How did it happen: Standard Chartered Bank wants to retain its customers by making

customers feel comfortable while they are at the banking premises. For this reason the bank has

arranged for adequate facilities.

What is the context: Standard chartered bank has made use of different means of getting









Existing Offers: The strategic planning of SCB involves repeated cycles of corporate and


planning of SCB consists of two organizational levels. Standard Chartered has revamped the

fourth series of The Greatest Race on Earth (GROE) to focus more on the national team

competition. In addition, a new initiative to engage the public as well as the runners called The

Environment Challenge has also been introduced for this year’s series.





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Performance:

Actual Achievements: Maintaining the customer relationship at a higher beneficial rate to

attain the market growth.

Desired Achievements: Standard Chartered Bank wants to establish themselves as a strong

brand name in the minds of customers. In order to achieve this objective they are continuously

coming up with innovative products.

Initiatives:

Standard Chartered understands the working capital needs of a company and offers Discounting

of letter of credit at when a seller gets a deferred letter of credit from a buyer, the seller may

wants to get the money for acquiring goods in advance or production cost earlier than the credit

expires. Standard Chartered Bank’s Financial Institution banking offers discounting of bills of




finance.


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4. Introducing more convenient and comfortable means of banking


Intervening ConditionsMoney, ResourcesWhy?

Improving the brand name and establishing an image

Who/What are Involved?Employees, Marketing People

What Consequences?Expected: Inform about banking alwaysActual: Only during special promotion

What Happens?Customers find easy banking at an affordable way

How: Process?Monitored Management Process

ContextProviding joy at banking

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Figure 15 Introducing convenient banking

Introducing Convenient and Comfortable Baking

The innovative products offered by SCB have already made banking more convenient for

customers. They have introduced token systems for customers who want to engage remittances.

Customers no longer have to wait for long hours in the queue; they can sit making themselves

comfortable and wait for their token number to appear on the screen before they go to the

counter. Through Standard Chartered Bank’s network of more than 600 offices in over 40

countries, it is very well positioned to provide a wide range of services to institutional clients:

commercial, merchant and central banks; brokers and dealers; insurance companies; funds and

fund managers, and others.

Introducing Convenient and Comfortable Baking in terms of the Phenomenon

Model

What: Providing banking at an ease and comfort.

Why: Putting the brand name above of all to retain the customer base at a strong position in the

amrkket.

Who: Easy banking and comfortable banking will be served by these personnel:

1. Employee

2. Customers

What Consequences Occurred: This wide network of Institutional Banking facilitates

transactions, introductions, problem solving and renders advice and guidance on local trading

conditions.


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What is the context: Easy Banking provides various types of support through a wide range of

operating systems, sweeping transaction accessories with the provision of reporting features or

other special functions. There are 10 offices and 50 employees under this division, which

operates in 26 countries.












Performance:

Actual Achievements: The aim of such approach is to shape and reshape the bank’s barnding so

that they yield target profits and growth.


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Initiatives:

There is one office in this division with four employees working in it. Problem Countries Debt

Unit is the Group's provisional exposure to countries experiencing temporary external liquidity

problems, when such exposures are not externally secured or advanced on a voluntary short-term

basis.

It is very true that major contribution to the bank’s equity has been from business banking sector.

It provides several types of services under business banking shows, SCB offers corporate

banking facilities to both local corporate and multinationals. Besides, it also provides

commercial, Institutional, Quasi or Correspondence and easy banking facilities.


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5. Valuing customer who make more use of SCB’s products and services


Intervening ConditionsMoney, Resources, EconomyWhy?

increase d relationship with bank

Who/What are Involved?Employees, Management

What Consequences?Expected: Honouring customers with high usageActual: Over estimating sometimes

What Happens?Customer relationship increases with the bank

How: Process?Financial Calculations

ContextThanking customers

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Figure 16 Valuing Customers

Valuing customer who make more use of SCB’s products and services

Standard Chartered Bank has made use of promotional strategies such as providing customers

with free gifts like perfumes, electronic products and shopping vouchers based on their use of

credit card services. For each 50 taka of credit, customers earn 1 point. They then can get free

gifts based on the number of points they have made. They also offer free gifts to customers who

make extensive use of ATM cards.

Valuing customer in terms of the Phenomenon Model

What: A professional management team caters to the needs of its clients and provides them with

a wide range of financial services some of which are project financing and investment

consultancy, syndicated debt and equity, bond and guaranties, local and international treasury

products.

Why: SCB first introduced consumer finance in Bangladesh and until today, they are the market

leader. It has varieties in financing its retail customers with innovative products.


1. Shareholder

2. Employee

3. Customers

What Consequences Occurred: Discounting of service at Standard Chartered Bank mean,

when a buyer or beneficiary get a issuance letter of credit from a buyer, he may wants to get the

money for acquiring goods in advance or production cost earlier than the credit terms. By this


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type of service Standard Chartered facilitates the manufactures or suppliers to manage their cash

more effectively.




What is the context: Personal banking and business banking of SCB, though these two are the

major functions of any commercial bank, a description of SCB’s customer services will not be

complete without a discussion on its Credit Card services.













Competitor: While SCB makes it a point to always strive to stay ahead in the game it does

however acknowledge that it is not the only big player in market. Therefore from a strategic


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stance SCB is always bound of its main competitors’ actions in terms of adoption of new service

and their relative investments.






Performance:

Actual Achievements: SCB is the pioneer in the banking services of Bangladesh. This section

of the report discusses different care services of SCB.

Desired Achievements: The staff of standard chartered are mostly involved in this process.

Because it is up them to make sure that all the money they are receiving are being used in an

efficient and effective manner.

Initiatives:

Standard chartered bank’s regular cost monitoring to be a “favorable”. Therefore SCB needs to

continuously reinforce and improve it costs monitoring in order to gain and maintain

sustainability. SCB understands these implications very well and is acting accordingly. For

instance, in 2009 SCB had a sales growth rate of around 44%. SCB has then set an ambitious

goal of doubling its sales revenue by 2010. To achieve this revenue goal is focusing on regular

cost monitoring with the global giants in banking industry. Aligned with this strategy, SCB has

significantly increased the capacity of its custom service. Standard chartered bank is gearing up

its facilities in preparation for the developed markets’ expectations.


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6. Introducing the concept of “Customer Loyalty Week”

H


Intervening ConditionsMoney, Competitor, Resources, Economy

Why?Customers to be served in better way

Who/What are Involved?Employees, Customers, Management

What Consequences?Expected: Serving in a better wayActual: Serving only to the benefited customers

What Happens?Made of solid binding with the bank

How: Process?Through detailed serving to the customers

ContextHonouring Customers

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Figure 17 Customer Loyalty Week in Terms of Phenomenon Model

Customer Loyalty week in Service

SCB has introduced the concept of “Customer Loyalty Week”, a week when loyal customers are

welcomed with pleasant gestures such as flowers or chocolates. They are also given the

opportunity to express their opinions about the service quality of Standard Chartered Bank by

writing them down and dropping them in the suggestion box. The management of Standard

Chartered Bank then takes actions based on customers’ suggestions, to raise and restore customer

satisfaction.


What: The carefulness with which standard chartered bank spends its money is the key issue

here and is one of the more important key success factors. This is one of those factors which

separates standard chartered bank from the other banks.

Why: Knowing where the money is going is vezy important if a person or firm wants to be

successful. Needless waste in money will obviously result in a shortage of money when the tune

comes.

Who: The staff of standard chartered are mostly involved in this process. Because it is up them

to make sure that all the money they are receiving are being used in an efficient and effective

manner.

What Consequences Occurred: To make sure that the money they receive are spent wisely.

Here the internal and external cost monitoring is also involved.


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How did it happen: Standard chartered took the initiatives to create awareness among the

managers so that they will be more careful on how the money is being spent.





Bank group.

Performance:

The actual and the expected performance is almost go hand ui hand for standard chartered bank.

From the analysis we have found that regular cost monitoring is favorable for SCB

Initiatives.

Initiatives:

Wide product range is favorable for standard chartered bank. They should maintain their service

and also try to introduce new service that is necessary for the consumer. Further SCB has to

monitor and think about what its competitors is doing and take necessary steps according to that

one important thing is they should minimize the service cost so that more people cab be able to

assess their service.


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7. Global Consumer Finance


Intervening ConditionsMoney, EconomyWhy?

Attaining measurable goal

Who/What are Involved?Economy, Empployees

What Consequences?Expected: Retain global presenence at all servicesActual: Only covering partial services

What Happens?Consumers are globally served for fincial service

How: Process?Global communication

ContextGlobal readyness

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Figure 18 Global Consumer Finance in Terms of Phenomenon Model

Global Consumer Finance

There are seventy-six branches and finance centers under this division in about the countries with

a workforce of 1616 employees. Some of the services provided by these divisions are unsecured

personal loans, credit cards and retail store cards, vehicle related leases, etc.


What: Achieve their objective of increasing their market share by engaging in global activities.

Why: To attain the global value from the banking perspective minimizing the risk of non

informing the consumers in the long run.


1. The people

2. Big firms

3. Employee

4. Customers

5. Competitors

What Consequences Occurred: Financial Institution Department, Bangladesh maintains Vostro

Accounts of banking and financial institutions worldwide, customer maintaining such account

can remit funds throughout the country through the Standard Chartered Bank branch network as

well as through- Chartered Bank's local correspondent relationships.





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What is the context: Standard Chartered is a market leader in foreign exchange across Asia and

has a strong presence in all of the major financial markets. SCB have dealing rooms in 39

countries and specialize in pricing emerging market, illiquid and restricted currencies. As a

leading foreign exchange provider, SCB actively trade in more than 100 currencies; offering

more currency pairs than any other bank. SCB continue to expand o product range to include

more hybrids, exotics, commodities and Islamic products and aim to become the leading FX

house across markets, by dominating the provision of G10 currencies and FX options.














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Performance:


and services so that they yield target profits and growth.




Initiatives:

Bonds and Guarantees give the buyer a certainty over receiving pre – agreed payment if a

supplier fails to meet his or her contractual obligations. Standard Chartered in Bangladesh issues

Bid Bond, Performance Guarantee and Advance Payment Guarantee against Counter Guarantee

received from Correspondent Bank worldwide subject to availability of Bank and Country Limit.

Standard Chartered possesses 140 years of experience in International Trade.


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8. Personal Banking

Figure 19 Personal Banking in Terms of Phenomenon Model


Intervening ConditionsMoney, EmployeesWhy?

Provide scustomized ervices in a better way


What Consequences?Expected: Individual careActual: Complexity in service

What Happens?Customers enjoys the joy of banking at SCB

How: Process?Thrrough personal pampering

ContextPersonal Banking

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Personal banking

There are about 410 branches with a workforce of 12,000 employees working under this division

in 28 countries. Some of the services provided by this division are various kinds of insurance and

loans, account maintenance, travelers’ cheques and money exchange etc.

Personal Banking in terms of the Phenomenon Model

What: Achieve their objective of increasing their market share by engaging in personal banking

activities.

Why: To attain the local and exclusive value from the banking perspective minimizing the risk

of non informing consumers.


1. Employee

2. Customers

What Consequences Occurred: Patronizing the motivating employees to get the increased

sales from the personal care in the banking services to get through the tough market condition.








Bank group.


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Performance:


and services so that they yield target profits and growth within time.




Initiatives:

Since the growth and profits of banking business largely depend upon the locations of branches

where large concentration of other businesses and industries are involved, SCB primarily focuses

on personal care strategy. Every year an overall profit target as well as individual targets for each

line of business (export, import, loans & advances etc) is set for each branch location by the

corporate bodies in collaboration with the regional heads and branch managers.


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9. HR Management

Figure 20 HR Management in Terms of Phenomenon Model


Intervening ConditionsEconomy, EmployeesWhy?

building solid employee group to serve better


What Consequences?Expected: Increased value of employeesActual: Some rejects the idea to be backed by bank

What Happens?Managed HR plans and practices to get the employee attention

How: Process?Through measuring employee benefits and goals

Contextmanagin the HR Dte.

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HR Management

This is also one of the most important success factors for Standard Chartered. Managing their

human resources took a lot of patience and skills. This job needs to be done very carefully

because it is not easy managing a company’s workforce so that they will work to their full

potential. But it is detrimental for Standard Chartered Bank.

HR Management in terms of the Phenomenon Model

What: This is basically to make sure that the human resources aka the staff of the company is

managed efficiently.

Who: Basically, human resource is itself a separate department The managers of this department

make sure that the right people are recruited and those who are recruited are living up to the

standards of the company.

What Consequences Occurred: : If the employees are working up to standards, than that

company will more efficiently and thus enable the firm got up to its expectations. But Standard

Chartered fails to mange this department As a result SCB face difficulties to run the whole

flow does it happen: The managers should have a clear idea on what types of people are to be

recruited and once they are recruited, what should their objectives and how should they set up on

doing it.

How did it happen: An organization’s profit, goodwill, Customer satisfaction depends on its

human resources. Based on this very basic fundamental philosophy, Standard chartered bank

believes that human beings are its most valuable assets and prime movers. SCB also believes that

the potential of human resource is limited only to the extent to what one can put to use. Realizing

this, SCB makes considerable investments in attracting and developing talented and dynamic


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professionals, not only to do their job flawlessly, but also to give them an environment which

fosters innovation and entrepreneurship.

What is the context: it is done to make sure that the people are working up to the standards of

the company and to make sure that the eligible people are hired for the company.













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2.3 Chapter SummarySummarizing the whole chapter is the context of this paragraph. The team members’ effort on

this chapter is involved in it. The phenomenon model described in the class room has been

discussed and developed for each model in this chapter.

Learning of this chapter will help to generate moderate decision in later parts of this report.


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Chapter Three:Strategies

3.1 Introduction:This chapter will discusses on the issues of different strategies and their measurements along

with the possible extension to the future of the company to sustain in the market.

Figure 21 Contents in Chapter Three

This chapter is the conduct of drafting, implementing and evaluating cross-functional decisions

that will enable an organization to achieve its long-term objectives. It is the process of specifying

the organization's mission, vision and objectives, developing policies and plans, often in terms of

projects and programs, which are designed to achieve these objectives, and then allocating

resources to implement the policies and plans, projects and programs. A balanced scorecard is

often used to evaluate the overall performance of the business and its progress towards

objectives.


3.2 Generic Strategies

3.2.1Specific Strategic Action

3.2.2Implementation of Strategic Actions

3.2.3 Brief Intro to decisions

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3.2 Generic StrategiesRevenue that SCB receives through conducting a transaction with another bank is the inbound

business. It provides a comprehensive payment, clearing, and trade services solutions to enable

smooth international trade and cross-border transactions. Pertaining to these reasons Inbound

Business unit has shown a significant and sustainable growth, since its inception in 2003. The

segment now contributes around 7% of overall WB revenue and enjoys 25% of overall market

share.

Inbound Cash and Trade Sales in Bangladesh currently comprises

Cash:

– Management of Vostro Accounts

– BDT Clearing: - Draft Drawing, International Payments (TT’s)

– ACU Dollar Clearing: - Reimbursements

– Network support

Trade:

– LC Advising, Amendment and Transfer

– Counter Guarantees

– Local Bill Discounting against bank limits

– Negotiations against bank limits

– LC Confirmations

– LC Reimbursement


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Figure 22 Inbound Revenue Trend

Figure 23 Inbound Revenue Mix

Inbound Achievements

Rolling of “Home Remittance “business with U.A.E. Exchange and Bank Al Bilad.

Opened Vostro Accounts of different foreign banks.

Sharing of fees with SCB NY and SCB London for big-ticket guarantee transactions.

Large guarantee transactions from correspondent banks. – Barclays, RBC, ABN Amro,

Deutsche Bank, Bank of China, Calyon, Citizen National Bank etc.

Increase flow of LC Advising.

Substantial increase in vostro balance.

Increasing usage of SCB by Malaysian and Aussie and Indian banks for payments


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Local LC confirmation business earned revenue of USD 252K

77% growth in LC Confirmation revenue over 2006 (Revenue USD 148k in 2006 and

USD 262k in 2007).

14% growth in Guarantee revenue over 2006

LC Advising revenue maintaining level (overall country’s export business declined by

23.06%)

Inbound Initiatives

Established relationship with Petrobangla for Guarantee business pertaining to upcoming

offshore oil block bidding

Agreement with Bangladesh Post Office (BPO), and IFIC for remittance distribution

through utilizing their channel.

Submitted concept paper to Bangladesh Bank for participating in the DFID funded

“Remittance & Payments Challenge Fund (RPCF)”. RPCF aims in helping the poor

villagers of Bangladesh

Inbound Failures

Home Remittance business yet to gain

momentum

Yet to open account of Exchange Houses due to document deficiency.

Bank limit crunch caused LBD and LC Confirmation business to suffer.


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BuildA build objective is typically achieved by means of growth. Not surprisingly a hold objective

may also be achieved by means of growth. Just to hold on to the current position a firm may

have to grow. (Moniruzzaman, 2006)

a. Market penetration/expansion: Current product-Current market: 1. Penetration:

new users within the same segment; and 2. Increase frequency of purchase: encouraging

customers to buy or use more of the product. E.g., persuading customers to brush teeth at

least twice a day. Kelloggs promoted its cornflakes as a food item that can be eaten as a

snack during the day and at night rather than solely at breakfast time. (Moniruzzaman,

2006)

b. Market development: Current product-New market: reposition the product.

Horlicks/Glucose was initially targeted at ill customers but now it’s used by athletes or

regular customers as nutrients or source of energy. Baby lotion being used as facial

cleanser by women. (Moniruzzaman, 2006)

c. Product development: New product-current market: it is used to increase sale by

improving present product or developing a new product. Most new car models are new

versions (or modifications) of the old model. Ford Mondeo is just a modification of Ford

Sierra. All new drugs are examples of new product development. (Moniruzzaman, 2006)

d. Diversification: New product-new market: Dunhill’s perfume, pen are examples of

new products (from Dunhill’s standpoint) aimed at different markets (new for Dunhill).

Heinz developed a new service ‘Weight Watchers’ to support a new range of low-calories

brands targeted at dieters. (Moniruzzaman, 2006)


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Build for SCB Revenue that SCB’s Bangladesh branch facilitates to be earned by branches in other regions.

i) Outbound Achievements

Reinstatement of relationship with Islami & Prime Bank from August 2007. Estimate

incremental revenue from these two relationships to the tune of USD 500k in 2007.

Fertilizer & Oil deals – Aggressively marketed for large ticket Oil & Fertilizer deals with

increased support from credit.

ii) Outbound Initiatives

Ensure accurate and timely reporting by the booking location

AMEX Acquisition impact – Expect increase in limits and growth in both Credit and

Non–credit business volume

Aggressive marketing for Islami & Prime Bank to ensure the maximum utilization of trade

limits of $15 m & $7m respectively.

Diversification of revenue – Tier II Bond issuance target in 2008

Global Market products - Structured deposits

Funded Risk participation with local banks

Booked new USAID funded relationship that Citi NA aggressively tried to book this account.


Market Position

AMEX18%

HSBC13%

Mashreq13%

Citibank13%

SCB26%

Others17%

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Figure 24 Market Position of Outbound

Investors & Intermediaries: This unites mainly work with different non-financial organization like leasing company,

insurance company, housing finance and so on. This unite mainly provide them different Cash

Management Services.

Officially emerged on February 2009

Started with 168 reallocated customers:

Insurance 17

Broker Dealers 32

Professional Firms 32

Other 87 (overlapping)

i) Achievements of I&I

Major Clearing Bank of Dhaka Stock Exchange

Cash management mandate for 2 top life insurance companies

ii) Challenges FOR I&I:

1. Limited product range – lending and small trade opportunity only


Market Position

AMEX18%

HSBC13%

Mashreq13%

Citibank13%

SCB26%

Others17%

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2. Volatile market – eroding margin on interest income

3. No opportunity for credit off-take or secondary market for this asset.

4. Narrow funding source – only from commercial banks

5. Too many players – some banks have also leasing operation

6. Concentration in Finance companies only.

iii) Opportunities:

Cash management solution with minimum credit exposure

More short term lending mix and trade finance business

Introduction of new product suits for - STF, Asset Backed Financing

Book some second tier customers

iv) Initiatives and growth plan

Successful completion of DBH MBS to create market opportunity

Focus on Insurance sector in Cash management, Re-insurance and tailor products to cater

their long-term investment.

Credit facility to top broker to retain existing business.

Quicker turnaround time for credit approval

A support for housing keeping – KYC, account opening and maintenance, call report,

research & studies.

.


product wise contribution

FX Earning9%CASH_NFI

1%

CASH_NII48%

TRADE_NII21%

LEND_NFI1%

LEND_NII20%

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Figure 25 Investors & Intermediaries-Product wise Contribution

Development Organizations

As a developing country, Bangladesh has been receiving high volume of foreign aid and loan

from supranational organizations and donor agencies. On average every year USD 2.8 billion

received in Multilateral Sector, 80% directly funded to government agencies. (USD 2.24b), 20%

can be received and managed by the commercial banks (USD 0.56b).

• SCB enjoys 80% market share among the commercial banks (USD 449m)

• DO average deposit in Bangladesh is approximately BDT12 billion

• 50% of the deposit is kept in Commercial Banks.

• 33% of the market share of the deposit has been retained by SCB. (USD 34M)


product wise contribution

FX Earning9%CASH_NFI

1%

CASH_NII48%

TRADE_NII21%

LEND_NFI1%

LEND_NII20%

DO Market Position

16%4%

Government Agencies

SCB

Other Commercial Banks

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Figure 26 Donor Market Position

Inflows of Donor Aid

Aid more focused towards peacekeeping, humanitarian and emergency relief

Development programs outlay declining steadily


DO Market Position

16%4%

Government Agencies

SCB

Other Commercial Banks

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Impressive growth in DO Business

2004 2005 2006 2007 2008#

Afghanistan 0.9 2 3.3 4.7 5.5

Bangladesh 5.3 6.5 9.2 11.1 14

India 2 2.2 3.4 5.2 7

Nepal 1.9 2.3 2.7 3.3 4

Sri Lanka 2.2 3.8 4.3 5.9 7.1

Total Revenue 12.3 16.8 22.9 30.2 37.6

@ Excluding AMEX clients

Requirements and Benefits to DOs

Basic Account Services related to current and STD accounts such as cheque printing, funds

transfer, balance information, remittances, etc.

Preferential interest rates on high credit balances

Preferential Exchange Rates

Proactive service and providing of information

Cash pick-up and delivery to and from their offices

Countrywide funds disbursement

Waiver of charges on staff accounts and personal loans facilities

Efficient services through computerized system

Uni-account for Dhaka, Chittagong, Narayanganj, Bogra, Khulna and Sylhet

New arrangement with a leading local bank which allows us to draw drafts on any of their

branches. This increases our reach to 61 new locations

24-hour banking with ATM network and Telebanking

Global network for easy transfer of funds from donor countries


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DOs in Bangladesh

Multilateral: World Bank, ADB, and UN Organizations

Bilateral: USAID, DFID, CIDA, SIDA, JICA

Intl.NGO: CARE, Oxfam, World Vision, Seventh Day Adventist

Local NGO: Grameen, BRAC, ASA

Products & Services of FI

The key products of Financial Institution Department are divided into two categories.

Risk Products

L/C Confirmation

Negotiations

Inter and intra Bank Guarantee

Local Bill Discounting

Non-Risk Products

L/C Advising

L/C Transfer

L/C amendment advising

Reimbursement Undertaking and Authorities

Fund Transfers

Export proceeds

BDT Draft Drawing

International Payments (T T’s)


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Risk ProductsL/C Confirmation

When the beneficiary or the seller receives the letter of credit from the issuing bank he wants to

be sure that he must get paid after delivering the goods. In this case the seller wants the

confirmation of payments from the advising bank. Standard Chartered Bank, when acts as an

advising bank gives the add confirmation to the seller that this letter of credit is authenticate and

the payments will be made after full filling all the terms and conditions of the letter of credit, so

Standard Chartered is prepared to add its confirmation to the letter of credits advised through its

network, subject to credit and country limits being available.

Negotiation

As the letter of credit is a freely negotiable financial instrument, any bank in the seller’s country

can be a negotiating bank. Negotiation of a letter of credit mean after delivering the goods to the

buyers and full filling all the terms and conditions of the letter of credit, the seller presents the

documents to a bank, like Standard Chartered. Then, it will examine all the documents as per the

letter of credit. If the documents are correct and up to date the negotiating bank pays the seller or

its like just purchases the documents from the seller. Standard Chartered advising and

negotiation fees for each market are based on local practices and applicable regulatory

guidelines. This is subject to periodic review and revision.

Inter and Intra bank guarantee

By this risk product Standard Chartered gives facilities to both the local and international

corporate customers. These types of inter and intra bank guarantees gives the buyers a certainty

over receiving pre-agreed payments if a suppliers fails to meet its contractual obligations.


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Standard Chartered’s Financial Institution Banking issues guarantees and advance payments

guarantees against counter guarantees received from correspondent banks worldwide.


Standard Chartered understands the working capital needs of a company and offers Discounting

of letter of credit at when a seller gets a deferred letter of credit from a buyer, the seller may

wants to get the money for acquiring goods in advance or production cost earlier than the credit

expires. Standard Chartered Bank’s Financial Institution banking offers discounting of bills of




finance.

Non-Risk ProductsL/C Advising

When a corporate customer process a letter of credit from a local bank favoring the buyers in the

different country the letter of credit has to be advised to the sellers or beneficiary. It means after

the contract between the buyer and seller, the buyer issues a letter of credit from his bank to the

seller’s bank to notify that he wants to buy the goods. But, in this case the seller’s bank does not

know the buyer’s bank. When the buyers and sellers are in the different countries, the risk of the

non-payment is high and the authenticity of the letter of credit also major issue. In this situation

international or global banks or any other nominated banks, like Standard Chartered Banks takes

the responsibility to advise the letter of credit to the sellers or seller’s bank. The beneficiary

receives the letter of credit promptly and the authenticity is checked though the seller can start

the process to deliver the goods right in time to the buyers.

Add instructions & send to SCB


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Payments

Beneficiary AdvisingBeneficiary

Processing documents Payments Collecting payments

Processing documentsL/C application

Goods

L/C Amendment

Parties involved in a L/C, particularly the seller and the buyer can not always satisfy the terms

and conditions in full as expected due to some obvious and genuine reasons. In such a situation,

the credit should be amended.

In case of favorable credit, it can be amended or cancelled by the issuing bank at any moment

and without prior notice to the beneficiary. But in case of irrevocable credit, it can neither be

amended nor cancelled without the agreement of the issuing bank, the confirming bank (if any)

and the beneficiary. Amendment of a L/C is required for the following reasons:

If the value of the L/C ha been increased or decreased.

If the expiry date of the L/C has been extended

If the name of reimbursing bank mentioned wrongly, etc.


Issuing Bank

Importer

Negotiating Bank

Exporter

Standard Chartered

Bank

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Reimbursement Undertaking and Authorities

On the other side the buyer is also concern that when and how to pay the seller. Letter of Credit

Reimbursement helps the buyer simplify a complex trade finance problem; how to settle

payment when the issuing bank is not a correspondent of the beneficiary bank. When the sellers

opens a letter of credit, incorporate a reimbursement instruction into the terms of the letter of

credit allowing a beneficiary bank anywhere in the world to claim payments from the Standard

Chartered branches in the country where the issuing bank has established its account

relationship. When the buyer uses a letter of credit along with that simply send a separate

reimbursement Authorization to Standard Chartered to effect reimbursement, preferably in a

written paper. Standard Chartered Bank offers the flexibility to stipulate an exact or an

approximate amount, as well as choosing whether the claim may or may not be restricted. On the

receipt of a claim from any bank from the beneficiary, Standard Chartered will be processed on

the day received or on the following day depending on the agreement.

Fund Transfers/Payment Instruction

Fund transfer is a non-risk product which helps the buyers and sellers to settle their payments

intensely according to the letter of credit directly to the beneficiary’s account any where in the

world. Standard Chartered continuous link service gives customers to send their funds in any

where in the world at any time.

Export proceeds

To an exporter it is very important to keep control over his goods until he is confident enough

that he is going to receive payments from the buyers or importers. Standard Chartered Export

precedes collection service take charge of the process document transfer adding greater whole

transaction. In this process Standard Chartered will collect all the documents from the exporter


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and arrange for them to be held at the exporter’s disposal during the transaction period. Once the

process is complete Standard Chartered will liaise with the buyer’s bank on behalf of the

exporter, arrange the documents to be transfer to that bank and collect the payment.

Discounting

Discounting of letter of credit at Standard Chartered Bank mean, when a buyer or beneficiary get

a issuance letter of credit from a buyer, he may wants to get the money for acquiring goods in

advance or production cost earlier than the credit terms. By this type of service Standard

Chartered facilitates the manufactures or suppliers to manage their cash more effectively.

Account services

F.I offers the full range of services available under Trade Finance to its customers. The Standard

Chartered Bank network in China, the Far East, the Middle East, and the Indian sub-continent,

Africa, UK and USA makes SCB the natural choice of correspondents for advising, confirming,

and negotiating their letters of credit in these territories.

i) Vostro Accounts

Financial Institution Department, Bangladesh maintains Vostro Accounts of banking and

financial institutions worldwide, customer maintaining such account can remit funds throughout

the country through the Standard Chartered Bank branch network as well as through- Chartered

Bank's local correspondent relationships.

ii) Nostro Accounts

In order to increase and promote the correspondent banking business worldwide, F.I uses Nostro

accounts to Bangladeshi banks and financial institutions in almost all spanning the Standard


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Chartered Bank global network. Group branches and sides provide full clearing and payment

services in the UK, USA, Hong Kong, Malaysia, Singapore and many African countries.

Worldwide payments services are facilitated by a network of branches supported by electronic

cash management (available in select locations), fund transfer system and membership of

SWIFT.

Foreign Exchange & FX Options

Standard Chartered is a market leader in foreign exchange across Asia and has a strong presence

in all of the major financial markets. SCB have dealing rooms in 39 countries and specialize in

pricing emerging market, illiquid and restricted currencies. As a leading foreign exchange

provider, SCB actively trade in more than 100 currencies; offering more currency pairs than any

other bank. SCB continue to expand o product range to include more hybrids, exotics,

commodities and Islamic products and aim to become the leading FX house across markets, by

dominating the provision of G10 currencies and FX options. Growth rates and trade and capital

flows across our business footprint continue to outpace global growth rates, providing a strong

demand base for our FX and FX Options business.

Bonds and Guarantees

Bonds and Guarantees give the buyer a certainty over receiving pre – agreed payment if a

supplier fails to meet his or her contractual obligations. Standard Chartered in Bangladesh issues

Bid Bond, Performance Guarantee and Advance Payment Guarantee against Counter Guarantee

received from Correspondent Bank worldwide subject to availability of Bank and Country Limit.

Standard Chartered possesses 140 years of experience in International Trade. Its’ broad

international customer base, professional insight and knowledge of Bonds and Guarantees

business have earned us a unique position in Bangladesh. We have more than 100 years of


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presence in Bangladesh and is the largest issued of bonds and guarantees on behalf of

correspondent banks to enable customers to capture global opportunities, SCB have a presence in

52 countries, in addition to extensive network of overseas banking partners and correspondents.

SCB is often involved at the both end of the transactions and can assist in simplifying the whole

process. Guarantees in Bangladesh are subject to local laws that can be complicated at times.

SCB’s extensive knowledge in this area is a significant advantage to its’ Correspondents.


Standard Chartered in Bangladesh offers discounting of bills of exchange/drafts that have been

accepted by the L/C issuing bank (The Accepting Bank) under local L/C. Local Bills are

discounted subject to availability of Bank Limit on the L/C issuing bank. Bill Discounting can

help in meeting cash flow needs, and give easy access to bank finance.

Bank to Bank Reimbursement Services

Letter of Credit Reimbursement helps to simplify a complex trade finance problem: how to settle

payment when the issuing bank is not a correspondent of the beneficiary bank. The solution is to

incorporate a reimbursement instruction into the terms of the letter of credit, allowing a

beneficiary bank anywhere in the world to claim payment from a nominated reimbursement bank

holding a pre – authorized debit instruction from the issuer of the credit. Here Standard

Chartered is not a party to the letter of credit but acts as a paying agent for the issuing bank


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Cash Management services:

Policies and techniques used at present are undoubtedly comparable to international standards.

Management and others related to Standard Chartered Bank are trying to formulate new services

and products. They are very quick in giving decisions. The bank introduces a large range of

services that offer products to the customers through its Cash Management Department and

provides smooth services to them.

i) National Collection Services (NCS):

National Collection Services (NCS) is a centralized system where clients maintain a single

concentrated account with Standard Chartered Bank for all their countrywide collections.

Figure 27 Elements of a Cash Management System

This service offers the following benefits to the customers: -

1. NCS is designed in such a way that funds collected from all the collection locations of the

clients are taken into their single concentrated account maintained with Standard Chartered


Dealer (B)

Dealer (A)

Authorized Seller (C)

Deposit Branch outside Dhaka

Deposit Branchoutside

Dhaka

Concentration Banks in

Dhaka(SCB)

Disbursement Branch

Disbursement Branch

Corporate Clients

Corporate Clients

Corporate Clients

Check receipt

Check Payment

Cash PaymentCashreceipt

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Bank. There are no needs for multiple local accounts with idle balances, and there are also

no needs to handle multiple, time-consuming reconciliation tasks.

2. They can deposits Cash/ Cheques (or other instruments) at the branches or the Correspondent

Bank branches. The bank has an area coverage of more than 200 locations (list enclosed

Appendix: I) out of which 19 are owned by Standard Chartered Bank itself in six major

cities: Dhaka, Chittagong, Sylhet, Khulna, Bogra, and Narayanganj.

3. NCS ensures increased liquidity for the clients’ companies by minimizing the transit time of

their cheques and other instruments. For locations where local clearing exists, the bank

offers them quick and guaranteed credit of funds; whereas for non-clearing locations

Standard Chartered Bank ensure funds are realized in the shortest possible time.

4. Alternatively, for outstation locations, the bank can arrange for their courier representatives

to collect the cheques and other banking instruments (excluding cash) from the clients’

offices at pre-agreed times. Standard Chartered is known for its dedicated support at each of

the locations it services and the bank maintains close contact with the clients’ offices.

5. NCS provides different types of reports to aid in the clients’ Receivables Information

Management.

ii) Premium Service Banking (PSB)

This is a Cash Management service that is tailor-made for the high net worthy and esteemed

corporate customers like IPDC, DFID, etc. The service offers the following features: -


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PSB Courier: A daily courier service that collects and deposits all routine transactions (except

cash) to and from the customers.

PSB Auto fax: This provides the customers with comprehensive statements of all designated

accounts at the customers’ desired frequencies (daily, weekly, etc.).

PSB Hotline: This is a single point of contact inside the bank for the PSB customers for all their

routine transactional queries.

PSB Inward Remittance Service: The bank proactively provides a fax report of any incoming

SWIFT payment messages even before the funds are credited to the customers.

PSB Express Payments: For urgent foreign payments, fax messages received against a standard

indemnity will be processed here.

PSB FX & Money Market Information: This provides a Daily Rate Sheet through E-Mail and

Weekly Market Report detailing Foreign Exchange Rates; Key Stock, Bonds, and Interest Rate

Indices and highlights from International Financial Markets, etc.

PSB Trade Reports: At Standard Chartered Bank, authorities understand how important it is to

be informed of the customers’ trade commitment at all times. The bank’s innovative information

service now enables the clients to get an up-to-date and easy-to-read summary of their

outstanding positions for Import, Export, Shipping Guarantee and Import Finance.

Customers get the following benefits from SCB’s Trade Reports: -

Monitor the clients’ outstanding at a glance

Take control of their bills’ status and cash flows

Optimality utilize their trade credit facilities

Proactively utilize their trade credit facilities

Control over the expiry dates for import and export letters of credit

Range of SCB’s Trade Reports:


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Trade reports put the customers in control of their trade outstanding and give them

the need to effectively manage their companies’ trade businesses. They can choose

the level of reporting that best meet their companies’ needs, and thus they can change

these selections as their businesses grow.

iii) Electronic Banking Services for Windows (EBSW)

The Electronic Banking Service offered by Standard Chartered Bank allows the clients to initiate

transactions and inquire about accounts electronically from anywhere in the world. They can

download necessary account information and store in their own PC.Once they have defined there

required reporting data into the system, they can display it on the EBSW workstation or print it.

The embedded report generator enables the clients to customize report formats to suit their

particular requirements. EBSW also incorporates an “events scheduler” which automatically

executes takes for the clients whenever they choose. Moreover, EBWS offers Data Export /

Import capability to/from other widely used Windows-based software (e.g. MS Word, MS Excel,

etc.).

iv) Internet Banking:

Internet Banking can significantly enhance the bank’s service to the customers and play pivotal

role in the future of in their businesses. Standard Chartered Bank’s Corporate and Institutional

Banking website offers the customers with comprehensive information on their accounts and a

number of value-added features. The only think clients need is an access to the Internet and they

will be able to use Internet Banking from anywhere in the world. As the Internet Banking

customers, the customers will be given a specific user ID and a confidential password. The

customers can then view the following information online:


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Cash Account Statement

Cash Account Balance

Cash Balance History

Clients can also print all these information as required for your records.

In addition, customers are able to find a comprehensive range of information about Standard

Chartered Bank, its services and worldwide network. A major advantage of Internet Banking is

that the user can access this website from any location through an Internet connection only.

v) OPSPAY

Standard Chartered is proud to present OPSPAY, a service for the Corporate Customers, which

offers automated bulk transfer (e.g. salary) from their corporate accounts. This will result in

errors and an overall improvement in the clients’ salary payment processing.

OPSPAY processes the clients’ staff salary payment by down loading the payment instructions

from an Excel file given by the clients. This can be in the form of a Floppy Diskette or if even

through E-mail. The service ensures that appropriate narration is provided for all individual

account credits (i.e. salary for the month of xxxxx) in account statements. This service has the

benefits of time-efficient. Standard Chartered Bank can act on clients instructions on the same

working day if the Diskette containing the information reaches our concerned department before

11.00 a.m.

The combined network of Standard Chartered Bank (18 offices and 25 ATM’s in 6 cities) and a

hundred –year old heritage in Bangladesh places us in a unique position to support your banking

needs. SCB’s branch network now covers Dhaka, Narayanganj, Chittagong, Sylhet, Bogra and


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Khulna, which are linked through on-line banking services enabling you to operate your account

from any of our branches or 24-hours ATM’s.

vi) Cash pick-up & Delivery Services

Through Cash pick-Up & Delivery Service, Standard Chartered Bank collects from and deliver

cash directly to customers’ company premises. The whole process is supported by a full logistic

setup that is in line with international standards. It is yet another initiative to bring the bank

closer to you.

Standard Chartered Bank’s Cash Pick-up & Delivery Services offer to it’s customers the

following services: -

Security

Convenience

Insurance cover

Flexible pick-up and delivery times

Customers should choose SCB’s Cash pick-Up and Delivery Services for the following reasons:

SCB can arrange for your cash volumes to be picked up from and delivered to your doorstep

so you no longer have to worry about sending someone to the bank.

Your cash will be picked up and delivered in a sealed container while being fully insured

within your specified limit during transit.

The cash Pick-up & Delivery Service will allow you to deposit cash in your chosen

concentration account with Standard Chartered, instead of maintaining multiple accounts for

each of your locations thus reducing costs and facilitating reconciliation activities.


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3.2.2 Implementations of Strategic Actions

3.2.2.1 Competition

Being in the completion phase SC has to take the initiative to gain the advantages of the market

and its benefits to get through the conventional banking system. Intentionally the bank can

introduce the issuance of the banking activities in the market to get the advantage of the

monitored evaluation in the capacity building authorities to prove the banking excellences.

In retrospect of the marvelous growth of FI revenue over the last eight years and contemplating

the intensity of competition yet to come, it is crucial for SCB to rethink its strategies and

marketing plan to sustain the growth of FI revenue. Correspondent banking service providers

domiciled in Bangladesh are expected to be fighting for a bigger pie, as the growth prospect of

the country’s correspondent banking business is limited. One of the ways to achieve that

objective is to maximize FI revenue generated from local clients and introduces more local

products. There is a huge potential for inbound revenue.

3.2.2.2 Cooperation

Alliances and joint ventures take many forms, including licensing agreements, franchise

agreements, relational contracting, relational management, consortia, virtual corporations, virtual

functions and joint ventures. It is not the details of these which are important as much as the

underlying rationale for strategic alliances in the first place. The success rate of mergers and

take-overs has been low; it is therefore important to determine whether or not this form of

cooperative action leads to better results. Although in Porter's study the rate of divestment of

joint ventures was lower (50 per cent compared with 75 per cent), other research has found no

significant long term effects of joint venture activity on profitability in any industrial sector.


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Given this, the real issue is why companies should choose an arm's-length contract rather than

entering into a full merger. This is of particular importance given the problem of the prisoner's

dilemma discussed later; no contract can cover all eventualities, and one side always has an

incentive to cheat in some way. (Moniruzzaman, 2006) SCB has no such options to take as an

initiative in this regard.

3.2.2.3 Capture

The degree to which a firm owns its upstream suppliers and its downstream buyers is referred to

as vertical integration. Because it can have a significant impact on a business unit's position in its

industry with respect to cost, differentiation, and other strategic issues, the vertical scope of the

firm is an important consideration in corporate strategy. Expansion of activities downstream is

referred to as forward integration, and expansion upstream is referred to as backward integration.

The concept of vertical integration can be visualized using the value chain. Consider a firm

whose products are made via an assembly process. (Moniruzzaman, 2006) Again, SCB has no

options to do any acquisition on this regard.

3.2.2.4 Care

Figure 28 The Parenting Advantage Formula


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Strategic design is possibly the most overlooked organisational phenomenon mainly due to the

perception of it being a simple task. The reality is that this is the actual guide that managers

would follow to implement their decisions. But there is a much more crucial reason for putting

considerable emphasis on the ‘strategic design’. The ‘strategic design’ is meant to be unique for

each firm and contribute to its competitive edge. Indeed, ‘strategic design’ should be done in a

fashion so that it cannot be imitated by other firms. Such design determines the effectiveness of

the strategies devised in systems such as the corporate value chain. Hence, the most important

consideration is that it is possibly alright to allow other firms to know about individual elements

of the strategic design such as the value chain but their linkages must be kept a secret at any cost

since the linkages result in a process that, if effective, would generate advantage over other

firms. Thus, even if other firms identify individual elements they cannot affect your firm’s

advantage due to lack of knowledge of how the process works. There is no way that any of these

companies would allow the other to obtain complete data on the ‘strategic design’.

(Moniruzzaman, 2006)

3.2.3 Brief Introduction of Decisions

3.2.3.1 Upgrades:

Before issuing a L/C, the buyer and seller located in different countries, concludes a ‘sales

contract’ providing for payment by documentary credit. As per requirement of the seller, the

buyer then instructs the bank-the issuing bank-to issue a credit in favour of the seller

(beneficiary). Instruction/Application for issuing a credit should be made by the buyer (importer)

in the issuing bank’s standard form. The credit application which contains the full details of the

proposed credit, also serves as an agreement between the bank and the buyer. After being

convinced about the ‘necessary conditions’ contained in the application form and ‘sufficient


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conditions’ to be fulfilled by the buyer for opening a credits the opening bank then proceeds for

opening the credit to be addressed to the beneficiary.

3.2.3.2 Production

Not relevant to the SCB’s activity.

3.2.3.3 Price

Price of any bank operating in Bangladesh can be divided into two groups: Statutory pricce and

General pricing. Statutory price refers to the amount of money to be deposited in the Bangladesh

Bank as a security to get the banking license. As a BB rule, this statutory price is at least 10% of

the paid up capital of the bank. According to the statements of 2002, SCB has statutory price of

BDT 830M in the Bangladesh Bank. This price has increased by 23% from the previous year to

accommodate the increased requirement of statutory price created by the increased amount of

deposit generation. Additionally, the general price of the bank at BB stands at BDT 3.23B by the

end of 2002.General price, as per the stipulation of the BB, is 20% of the total deposit the bank

which must be kept as cash in the vault of the bank or with the BB or corresponding bank. The

objective of such general price is to mitigate the daily demand for money for transactional

purposes.

3.2.3.4 Segmentation

Documentary credits according to Payment Methods will have to be change accordingly:

a) Sight Credit:

When the payment terms stipulate the presentation of sight draft, the beneficiary (the seller) receives

the proceeds of the credit upon presentation and examination of the documents. The negotiating bank

after making payment to the exporter sends the documents to issuing bank. After determining that the


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documents are in order, the issuing bank delivers them to the buyer and at the same time debits the

buyer's account, which offsets reimbursements to the seller's bank.

b) Acceptance Credit/Term Credit (Credit with time drafts):

In case of acceptance credit the exporter draws a time draft either on the issuing or confirming bank

or on the buyer or on another bank depending upon the credit terms. The payment date may be for

example 90 days after the invoice date or the date of transport documents. When the documents are

presented the draft is accepted instead of payment being made.

c) Deferred Payment Credit:

The credit with deferred payment differs slightly in its effect on the beneficiary from the time draft.

The main difference is the lack of a draft. Upon presentation of the proper documents, the bank so

authorized issues a written promise to make payment on the due date. Term credits i.e. acceptance

credits and deferred payment credits are financing instruments for the buyer. During the payment

period, the buyer can often sell the goods and pay the credit amount with the proceeds.

d) Credit with Advance Payment:

Some letters of credit provide for advance payment of a portion of the credit prior to compliance with

all the credit provisions. The purpose of this advance is to give the exporter, the fluids necessary to

purchase or process merchandise especially for the buyer. Two typical arrangements deserve

mention.

3.2.3.5 Geographic

Balanced growth to drive performance: Standard Chartered's consistent performance is supported

by a strategy of organic growth and geographic diversification. Carefully selected acquisitions

are helping the bank to grow in key markets such as India, South Korea, Indonesia, Pakistan and

Taiwan.


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3.2.3.6 Corporate Projects

Standard Chartered Bank, the largest and one of the oldest foreign banks in the country has been

successfully doing business in corporate and consumer banking sector for years. It has

introduced many new financial consumer and corporate products like money builder in the

market. Recently the bank attracted a great deal of attention through it's acquisition of another

foreign bank operating in Bangladesh "ANZ Grindlays" from August 2001, the two competing

banks will complete the merger process and operate from the same platform. This is a concept

for a country like Bangladesh where merger of two large distinct organizations is still far-

fetched. However with its increasing customer base the service quality seems to have declined.

3.3 Chapter SummaryOrganizing the decisions in a nutshell was the objective of this chapter. The initial improvements

of the decision will be available to measure in the sense of management processes could be

minimized in this issue. The later parts will be displayed with the possible implantation and

evaluation of the managerial decision taken here.


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Chapter Four:Implementation and Evaluation

4.1 IntroductionThe implementation stage is visualized as starting after the choice of strategy has been made.

Once implementation gets under way it is to be expected that there will be a constant process of

feedback with earlier stages. As resources are mobilized it may become apparent that the original

objectives are unattainable, that predicted costs were too low, that likely competitive reaction

was overestimated and that the full range of strategy choice was not realized. This may make it

difficult to isolate implementation as an independent activity in practice. However, by treating

implementation as an independent part of the strategy process, the manager is forced to

recognize that no matter what sophisticated analysis has been undertaken to arrive at a strategic

choice, at the time the choice is made it is possible that nothing has been produced and nothing

has been sold. In other words, choosing strategy is not an end in itself; unless there is a

mechanism for making it happen it is a somewhat pointless activity. (Moniruzzaman, 2006)

This chapter will evaluate the implementation and the context of the findings of the decision and

the internal measurement done throughout the report.


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4.2 Implementation

Figure 29 Strategy Elements- SCB Vs Top 4 Competitors


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Key insights

Competitors are closing the gap on key drivers’ of SCB’s competitive position: people,

technology, products and markets

Sustaining market dominance will require moving into new markets to accelerate B/S

growth and offering value added products to maintain profitability.

Organizational Elements- SCB Vs Top 4 Competitors

Figure 30 Organizational Elements- SCB Vs Top 4 Competitors

Standard Chartered Bank has a large capital base that gives it an edge over competitors. It is

currently a provider of the highest range of products. It has a leading market position in Cash

Management and Trade-related services, which provides the platform to drive future growth.


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Position

Table 4 Depicting Competitors

Table 5 Competitive standing of SCB Products; Source- Annual Review SCB Bangladesh


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Nationalized Commercial Banks (NCB) are less regulated than Standard Chartered Bank but

NCBs are burdened with inefficiency and low quality lending portfolio, though those banks

continue to dominate government businesses (90%) mainly due to regulatory advantages and

geographic reach.

Foreign Commercial Banks (FCB) continue to hurt the margin. They are the major

competitors in Cash with a strong product range.

- HSBC and CITI , have limited capital and network

- American express has already wrapped up its corporate operations and thereby has decreased

its competitive position in the market.

Private Commercial Banks (PCB) with migrated skills from foreign banks are slowly moving

away from vanilla products and age-old systems to higher value added products.

SCB is leading in terms of branch-wise share, deposit, loans & advances,

reserves, and foreign exchange.

Competitor Product(s)


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Competitive Performance of SCBAs per the Annual Review SCB, Bangladesh (2008), SCB's product mix seems to be more

profitable compared to that of the market. The market, on the whole, is more

dependent on cash management and deposit products to generate revenue. In contrast,

Standard Chartered Bank has successfully generated the highest proportion of revenue from its

trade-related activities. Standard Chartered Bank enjoys the number one position in Cash

Management, and Trade activities. Due to a more conservative approach in lending activities

Standard Chartered Bank has reduced its exposure in this area.

Overall Challenges

The business has reached a plateau where incremental growth prospects are reducing.

Extremely competitive environment with new entrants like HSBC and Mashreq in addition to

old players like AMEX, Citi and Chase.

Growing tendency to offer rebate on all products.

Limit constraint on new banks in the face of constant shift of business from NCB’s to PCB’s

Reduction in business cancellation.

A further 23 million USD limit suspension & exit of two major relationships (Prime &

Islami) owing to a commodity related trade dispute - 1 platinum, 1 gold (FI revenue

potential approx. US$ 1.5 million in 2005)

Overall constraints on other Bank limits since the beginning of this year

Lack of appetite for commodity transactions due to policy shift

New entrants in the market : ICICI, Habib Bank Zurich, Habib American Bank

Downward pressure on pricing & Rebate war

Generous confirmation limits of other leading correspondents & non-present German banks

Other internal factors (i.e. resource shortage)


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4.3EvaluationBuilding and managing relationship with local banks in Bangladesh is essential for sustenance

and continuous growth of FI business. In a financially underdeveloped country like Bangladesh,

local banks, in general, lack the expertise in different aspects of international banking. Therefore,

organizing such workshops / seminars for local banks and to share knowledge / expertise that

SCB is privileged with, can be viewed as part of not only our marketing efforts but also as our

contribution in developing the local Financial Industry. This will allow us to expand our market

share, re-iterate our commitment to this business, ring-fence the customer and above all portray

SCB as their “Partner in Progress “.

The strategic management approach is initially based on expectations. When the plan is

implemented it is necessary to measure and evaluate actual performance to find out if the

expectations are being fulfilled. When the component parts of the plan have been made explicit,

the plan provides a benchmark against which actual outcomes can be compared, so that when

variations between expected and actual outcomes occur their causes can be investigated. For

example, it may be found that the net contribution from a particular product is lower than

anticipated in the plan; this could occur for a variety of reasons, for example because the selling

price turned out to be lower than predicted, or because productivity was lower, or because

market share turned out to be harder to win. The reason for the shortfall will suggest whether

action should be taken to achieve the original objectives, or whether the plan itself needs revision

in the light of events; it is essential to identify whether the deviation from the plan is due to

causes within the control of the company. This process contributes to the conversion of the plan

from wishful thinking to a means by which the company is helped to exert control over its

performance. (Moniruzzaman, 2006)

The following evaluations are made to the respective concerned for consideration and

implementation:

Build platform for Supranational Trade

Target Development Projects / Organizations. (various Ministries, DFID project worth

GBP 5M ,RFP participation – US Embassy & Plan International)

Improve non-credit mix further (explore non funded trade and guarantee business).

Sell bonds / derivatives products


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Focus on relationship with large names like ALICO as well as create new relationship

(DBH).

Settle dispute with Islami and Prime Bank

Export Bill collection (Uttara, UCBL, Mercantile)

Expansion of trade risk sharing facility to new banks through supranational.

Large ticket deals including Oil deals

Improved mix of income (emphasis on non credit business)

Sustain key relationships through reinforcements.

Alliance Arrangement with some selected correspondent banks for trade business.

Explore inbound business in Chittagong, Khulna and Sylhet.

Corporate representatives at key branches.

SCB should increase their branches to provide service.

With lack of knowledge about the product of FI, the customers get confused and

frustrated. SCB must promote the call center service n a way that customers can get all

the foreign exchange services from the call center and come out with their specific needs

through which SCB could ensure better and efficient service. .

A particular information section will truly facilitate the new as well as retained

customers.

The charges system should be changed. Otherwise it can be a threat for the bank in

future.

Increasing number of staff (CSO/PFC/PSO).

Bank can accept new ideas from the customers for regarding improvement the quality of

their service. They must suggest promote the idea of participation in customers so that

they can willingly share their views and reduce their discomforts if there is any.

SCB should make their products cheapest and easiest to the customer by introducing a

competitive marketing strategy.


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Chapter Five:Strategic Plan

Considering the customer queries, the following recommendations are made, which will benefit

both SCB and its customers.

During the rush hours, necessary PSOs should be allocated in that time. Again, the holiday

rush hour is slightly different from working days. So proper allocation of manpower can

improve the service quality.

As the authorization is the most frequent problem, so the PSOs should be trained in such a

way so that they can solve all sorts of authorization related problem quickly.

It is a noticeable problem that the online remains down especially in holidays. So, necessary

steps should be taken for smooth service.

The frequency of personal calls that falls under “others” category has a remarkable figure.

Now if service remains busy with the personal affairs, the proper service cannot be given.

Lost card report is a very irregular problem that can occur anytime. So the CC holder should

be informed about the problem and its solution.

Due to the wrong information provided by the direct sales executives, many unnecessary

calls come to the service. So, proper coordination and product information can be a better

solution in this situation.


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Another very important thing from my personal observation is that one person calls for

several times for the same problem, which increases the call frequency. Proper assurance

and solution over phone can a better alternative to reduce extra calls.

Among all the PSOs, some are very expert in some specific areas, so in taking the

consideration of the calling variation and frequency, some adjustments could be made to

improve the service and reduce calls.

Maintaining MIS and a tabulation work can be maintained for better call handling. Proper

division of call variation can reduce the load of one PSO to handle different queries.

Proper monitoring of the activities of the call center could be better solution for handling

queries. So, these are the strategies made in considering the finding the report.

In considering the customer satisfaction on the credit card service, the following

recommendations are made, which will benefit both SCB and its customers.

In case of reliability, the customers are satisfied. But as we have seen that still there are a

lot of scope to achieve or increase some satisfaction to the mid-satisfied customers, so

SCB should grab the opportunity and ensure that the customers are not only getting

accurate information but also the promised service in the first and promised time so that

customer can highly rely on our service.

In case of responsiveness though the customers are satisfied, some necessary steps can be

taken for improvement. Giving the prompt solution or informing the customer about the


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action taking time and also proper maintenance of this informed action taking time could

improve the customer satisfaction from very to high level.

Again in case of assurance, right solution should be given so that the customer feels more

confident after getting the service.

Only understanding the customer problem will not satisfy them unless individual

attention and caring highly satisfy them. So proper individual attention and caring should

be there to make customers highly satisfied.

In accessibility, the customers are totally dissatisfied. Limited phone line and service time

with uncertain access, a long time consuming waiting time to get the service is becoming

time consuming and costly to the customer. So in order to improve this situation, phone

line should be increased with the increase of other resources.

Though customers are satisfied with the courteousness, warmly greeting is replaced by

the artificial one. Proper warm greetings, more polite and helpful behavior could get the

highly satisfied customer.

So, SCB should start strategic planning to increase the infrastructures and also the seven

important constructs needed to support its large customer base. So, considering the service

sector of Bangladesh, SCB should be more conscious to deal with its customers as the customers

have now more choice to bank with and there are institutions that are intensifying competition by

focusing more on superb customer service.


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References

Moniruzzaman, M. (2005), Strategic Management: The Phenomenon Approach to be published

in September/October 2009.

Frame, J. Davidson, Managing Projects in Organizations: How to Make the Best Use of Time,

Techniques, and People , 3rd edition, Jossey-Bass, 2003, ISBN 0-787-96831-5

Kerzner, Harold, Project Management: Project Management: A Systems Approach to Planning,

Scheduling, and Controlling, 10th edition, Wiley, 2009, ISBN 0-470-27870-6

Larson, Elizabeth and Richard, Requirements Management, Part 1: Requirements Planning ,

Watermark Learning, Inc., 2009, ISBN 978-0578019598

Lewis, James, The Project Manager's Desk Reference, 3rd edition, McGraw-Hill, 2006, ISBN 0-

071-46464-6

Martin, Paula, Tate, Karen, The Project Management Memory Jogger: A Pocket Guide for

Project Teams, GOAL/QPC, 1997, ISBN 1-576-81001-1

Meredith, R. Jack and Mantel, Jr., Samuel J., Project Management: A Managerial Approach , 7th

edition, Wiley, 2008, ISBN 0-470-22621-8

Project Management Institute, A Guide to the Project Management Body of Knowledge:

(PMBOK® Guide), 4th edition, PMI, 2008, ISBN 1-933-89051-7

Schwalbe, Kathy, Information Technology Project Management (with Microsoft® Project 2007

CD-ROM), 6th edition, Course Technology, 2009, ISBN 0-324-78692-1


http://www.amazon.com/gp/product/0787968315?ie=UTF8&tag=watermlearni-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0787968315






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Weiss, Joseph and Wysocki, Robert, Five-phase Project Management: A Practical Planning And

Implementation Guide , Basic Books, 1992, ISBN 0-201-56316-9

Newsletters of Standard Chartered Bank.

www. ANZ Grindlays and scbmerger.com

Brochures of products of Standard Chartered Bank.

Annual Report of Standard Chartered Bank.

www.standardcharteredbankbd.com



Documents

Strategic HRM Plan for Standard Chartered Bank Limited (Bangladesh)