11 February 2011

UniCredit BulbankMilitary Medical Academy (VMA) Branch - Business Plan / management team’s strategy

Period: May, 2011- May, 2013

Prepared by: Kristina Prodanova Phone: +359 885 132 311Email: kristina.prodanova@gmail.com

THIS DOCUMENT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION

Supplementary and supporting documents that also form part of this plan are included as appendices.

1. Table of Contents ________________________________________________________

Table of Contents 21. Executive Summary 12. Development 43. Background Corporate & Business Information 54. Analysis of the Characteristics of the Location / Development of Strategy at the Branch Level 75. Marketing Activities 12

Market analysis 12

Potential Clients 14

Marketing goals & strategies 17

Sales management 17

6. Operations 197. SWOT analysis 228. Risk management 24

© Copyright 2010 UniCredit Bulbank Corporation. All rights reserved.

By accepting a copy of this report, the recipient agrees not to reproduce it in whole or in part, not to use it for any other purpose than reading, and not to disclose any of its contents to third parties without written permission of UniCredit Bulbank. The report is furnished for internal information purposes only. No representation or warranty is made by UniCredit Bulbank or any other entity as to the accuracy or completeness of the information, and nothing contained in the report is, or shall be, relied on as a promise or representation of the future.

Executive summary

2. Executive Summary

Geographical & demographical characteristics of the location

Our research and in depth analysis of the geographical and demographical characteristics of the location provided us with valuable information as to the following:

- Identification of significant points of interest (high concentration of university hospitals, medical and health care centres, construction companies, IT specialized companies, other service companies, entertainment and relax centres, other companies and stores operating in the location);

- Characteristics of the residents and the visitors of the area;- Competition – five basic bank branches within 500 m distance from the location.

Innovative branch

The existing competition in the area (five other bank branches operate in the same street) requires that the new branch is differentiated. This will be achieved with the development of an innovative UniCrefit Bulbank branch, in terms of the following:

- Interior designing and arrangement of the branch;- Installation of advanced automated teller machines;- Recruitment of an enthusiastic young management team.

Main products to offer – individual customers

The location is characterised by the enormous volume of visitors from other areas and the suburbs of Sofia during working hours (employees of the hospitals and medical centres, medicine students and visitors of the hospital and medical centres).

The management team’s efforts will mainly be focused on promoting the following:

- Mortgage loans;- Debit / credit cards;- Consumer loans- Consumer packages- Other products

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Executive summary

Main products to offer – SMEs

The location is also characterised by the presence of a significant number of university hospitals, medical centres, stores selling sanitary equipment and pharmacies, construction companies, IT specialized companies.

The management team is in the process of identifying all these companies and analysing their financial position and potentials. The above analysis together with the UinCredit Bulbank databases and other available tools will provide the management team with specific targets prior to the opening of the store.

The management team’s efforts will mainly be focused on promoting products for small business:

- Payroll accounts; - Working capital loans; - Investment loans;- POS terminals; - Cross selling activities (i.e. credit cards to the owners of the stores, access to the

customers of these businesses); - Other products

Opportunities under EU financed Operational Programmes in Bulgaria

The vast experience of the branch manager in the fields of EU affairs and related projects will allow her to approach individual clients and SMEs (situated not only in the area of the branch) that have won projects under the EU financed Operational Programmes in Bulgaria. Our research indicated that under the scheme for SMEs nearly 200 companies were approved, that will need financing of their projects through bank loans mainly because the requirements of the program stipulate that in order the grant to be allocated, the project has to be completed and paid in full by the beneficiary in advance, prior to the allocation of the EU co-financed grant.

By financing such projects, the branch will have the opportunity to offer full banking services with all the additional income arising from.

Branch managers’ efforts and initiatives

Notwithstanding the locations’ advantages and its considerable traffic of visitors, the success of a bank branch is highly dependent on the efforts and initiatives of the branch manager to attract new customers. The following activities have already been planned and prepared:

- Establishment of contacts with the major employers of the area (hospitals, medical centres etc);

- Benefit and utilisation from / of the existing personal and business contacts with important persons of the business community of Sofia;

- Connections with the “Greek business community” comprising of influential executives.

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Executive summaryBranch managers’ career orientation

The branch managers’ competencies along with the vast experience in broad areas of professional advisory services, high level negotiations and managing of people, will ensure:

- That the branch team will be strictly supervised, monitored, motivated and trained to achieve the branch’s goals and objectives;

- The customers’ will be served in accordance with the policies and business code of conduct of UniCredit Bulbank Bulgaria;

- UniCredit Bulbank management will work with reliable and highly responsive professional.

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Development

3. Development

UNICREDIT BULBANK VMA BRANCH is currently under the construction and development phase which is planned to commence before April 2011 and should be completed not later than end of April, 2011. The official bank branch opening is scheduled to start operations on 4, May 2011.

The following is the proposed development schedule, to be implemented after financing is secured:

DesignStatus: started

Approval and PermitsStatus: submitted

RefurbishmentStatus: to start in February 2011

Start of operationsPlanned for 4 May, 2011

Site determination

Advantages Disadvantages

Extensive “face” of the store to the street

High flow of potential individual clients; location is close to big medical and university hospital and Cliniques;

Many available blue zone parking places

Near-by competitive retail banking branches;

Project plan, Phasing diagram and Development Plan should be defined at the level of the UniCredit Bulbank Headquaters.

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Background Corporate & Business information

4. Background Corporate & Business Information

The identification of the UniCredit Group and UniCredit Bulbank business goals and mission is essential to our understanding of the specific goals at the branch level and at the individual level (“balance scorecard” approach).

Within the UniCredit corporate goals and mission in mind we can:

- Translate the vision into operational goals; - Communicate the vision to each branch employee and link it to individual performance; - Make business planning at the branch level; index setting with the UniCredit corporate

goals; - Provide feedback and learning, and adjusting the strategy accordingly.

Business goals / mission of the branch

Obtaining a permanent place in the banking market is our primary goal. We assist clients in developing and implementing effective financial solutions. We wish to develop a new branch located in the area of the Military Medical Academy and make it operate at “break even” and successful within a period of two years. We see it as our main mission to provide high quality, higher standards, competitive rates, and better service to the targeted markets . Basic corporate objective is reflected in everything that we do, which is to contribute to the enrichment of the quality of lives for people around the world.

In compliance with information published officially in Dnevnik Newspaper, dated 9 Feb, 2011 UniCredit Group will develop in 2011 its business in 3 major mainstreams in Central and Eastern Europe according to announcements of Gianni Papa, Director at UniCredit Group for CEE region. According to the information provided by Mr. Papa, cited by Reuters, Bulgaria is among the countries in the second main stream group of focus, which target is mainlining of market position achieved. Given the information about the focus of UniCredit Group in Bulgaria in the year 2011, the mission of the new planned for establishment branch will be aiming at supporting the bank presence in Bulgaria and attracting new customers in the area of establishment in order to further strengthen the position of UniCredit Bulbank in the retail banking sector in Bulgaria.

Business description

UniCredit Bulbank is a bank in every sense of the word. It markets a wide range of banking and financial services to local / regional / national / international businesses and individuals.

As more and more of the population gain an interest in retail banking products, the demand for specific products has also increased. To meet the expected demand, as well as new services, UniCredit Bulbank has made a strategic decision to finance the establishment of new branch in order to further penetrate the retail banking market.

Key advantages of UniCredit Bulbank

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Background Corporate & Business information UniCredit Bulbank has managed to attract and retain a number of highly skilled and well

known professionals within the banking industry, giving the bank a distinct key advantage over many competitors.

A unique e-commerce proposition strongly positioned. Established partnering relationships with third parties and customers. Maintains a high-quality real time financial information system. Provides easy access through its network of branch offices nationwide.

UniCredit Bulbank has several important competitive advantages: Competitive interest rates and charges. Senior management have significant banking and financial experience. UniCredit Bulbank has a reputation for very high quality. UniCredit Bulbank has consistently set and achieved financial measures in the areas of

liquidity, and profitability and is positioned well for future growth.

Strategic positioning

UniCredit Bulbank VMA Branch differentiates and positions its business from the competitive offerings by having built a reputation in servicing the retail banking and financial industry with its services, providing high-end quality and customer’s satisfaction.

Branch formation

The branch will start operations on 4 May, 2011. Its registration number is not available yet. The branch will employ four people, including possibly Mrs. Kristina Pordanova who is under the selection procedure for becoming the branch manager.

Business philosophies/identity

By combining experience and know-how UniCredit Bulbank VMA Branch will be able to create a high satisfaction level. UniCredit Bulbank VMA Branch will use advanced technology and tools as to offer a high quality product mix. We operate strictly under the Code for Banks in the Republic of Bulgaria.

Our corporate philosophies are embedded in our customer oriented management and operations, providing excellence in our services, continuous efforts to expand the existing market of UniCredit Bulbank and create new markets, enhancement of research and development on a long range perspective, commitment to care for end users through providing even better service after sale, pursuit of further globalization of UniCredit Bulbank’s business fostering positive growth through diversification.These philosophies shall be incorporated by all employees of the new branch at all levels.

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Marketing Activities

5. Analysis of the Characteristics of the Location / Development of Strategy at the Branch Level

Geographical / demographical characteristics

UNICREDIT BULBANK VMA BRANCH will aim at becoming the most preferred partner for providing retail banking and financial services in the area where it operates for corporate (SMEs) and individual customers.

The area is characterized by the presence of the “Military Medical Academy”, “St Ekaterina University Hospital”, “National Centre For Health Information”, “Medical University”, “Alexandrovska Hospital”, “State Maternity University Hospital”, as well as by the presence of sixteen additional medical and health centres subordinated to them and a considerable number of drug stores and stores providing sanitary equipment.

The area represents a residential area very close to the city centre with a significant number of apartments leased for offices. It has a high density of population and has significant traffic during working hours comprising people from other areas of Sofia and its suburbs where bank branches are not available.

In summary, in geographical and demographical terms, the location provides an excellent opportunity for the expansion of UniCredit Bulbank, in the core urban area of Sofia.

Competition in the area

Our search and on site visit, indicated that the following bank branches are present:

Postbank office , Located on “St. Georgi Sofiiski’ Blvd. No 2; DSK bank on the same street, No 3; First Investment Bank on the same street, No 4; Alpha Bank on the same street, No 4a Central Cooperative Bank on the same street, No 56;

These branches are “traditional” bank branches which are not differentiated from any other bank branch.

The establishment of an innovative bank branch in this area will represent a significant competitive advantage.

Main products to offer and profit from

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Marketing Activities Taking into consideration that potential customers will be clients from the neighbourhood

and the health and medical care area we consider that the main products to focus on will be mortgages, consumer and SB loans, transactions, debit/credit cards, etc.

Business products selling will be developed also within 1-3 months;

Commercial results estimate for May, 2011 – Dec, 2012

Table 1 Clients estimate

Table 2 Commercial plan

Vision of the branch of the future

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Marketing Activities The planned new branch can look forward to a promising future, because of our ambitious selling force, our services, our careful planning, the potential of the targeted market segments, the management devotion for making the branch profitable within the required time frame and within the set financial targets. The performed pre-market research by the Headquarters has shown the market to have plenty of room for a business such as UniCredit Bulbank VMA Branch intends to run. The management style needed for a new bank branch establishment so as to guarantee its success should be flexible, progressive, and energetic and always remain focused to the client. Enthusiasm of the management as well as the employees will greatly stimulate the envisioned growth.

The introduction of advanced automated teller machines will allow our selling task force to focus on the development and expansion of the branch, making the difference from the competition by demonstrating high responsiveness to the customers’ needs.

The strategic vision of the management of the branch will be to secure as much as possible affluent clients, increase and retain a steady-increase in the number of mass clients and upper-mass clients as well as SMEs. In addition to this strategic vision the branch management will also focus on retaining the attracted customers (individual and business) as active clients. Will put serious efforts on decreasing significantly the number of any dormant clients and put efforts to awake the marginal clients trough effectively using the bank’s promotional tools.

In order to attract affluent and business clients, it is considered that three parking places should be leased from the municipality (managed by the “security” employee), taking into consideration the high volume of traffic of people around the medical and health care centres, that makes the blue parking zone extremely busy, especially in rush morning and afternoon hours.

Main objectives

Business objectives

Short – term

1. Obtain a considerable retail customer base in the first months of operations which will cover significant part of the direct costs of the branch (payroll costs and rental);

2. Establish a growth momentum which will allow the branch to cover a significant part of the other costs (depreciation of the amount of the capital expenditure) during the second year of operations.

Long - term

1. Become amongst the most successful branches in Sofia (amongst top five);

2. Provide significant contribution to the expansion and growth of UniCredit Bulbank in the core urban area of Sofia;

Critical success factors

1. Designing / refurbishment of an innovative bank branch differentiated from the traditional bank branches operating in the area;

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Marketing Activities

2. Established as the most preferred retail banking partner for corporate (SMEs) and individual customers;

3. Committed and strong branch team being able to fully utilize the bank’s know-how, databases and “selling” tools;

4. Benefit from the high volume of traffic observed in the area;

5. Branch managers’ efforts and initiatives;

Promotion of internet banking

UniCredit Bulbank has currently a well positioned web site, providing information about the company, its services and its senior management staff. Our clients can also benefit from the advantages of Internet banking. We provide complete control to manage an account online, send/receive funds, make investments, dealing in shares and so forth.

The teams’ goal is to promote the internet banking to every new customer, as it is minimises the clients’ visits to the branch which allow the branch team to focus on more productive and selling activities.

Management team

UniCredit Bulbank VMA Branch’s management team will be trained to gain direct knowledge of the industry, extensive research experience, and professional administration skills. The selling force team will tailor to the needs of the corporate or individual client and will provides expert advice where needed.

During the training period the management team will be aiming at the following:

Obtain advanced knowledge of the banks’ internal systems, policies and procedures;

Be in a position to utilise the bank’s tools;

Obtain an understanding of the internal reporting requirements, being in a position to deal with the extensive reporting from the second month of the operations;

Personnel

The 5-year projection for personnel is expected to show the following:

Personnel projection Year 1 Year 2 Year 3 Year 4 Year 5

Management 1 1 1 1 1

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Marketing Activities Sales 3 4 4 5 5

Security 1 1 1 1 1

Total 5 6 6 7 7

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Marketing Activities

6. Marketing Activities

UniCredit Bulbank VMA Branch product mix

Our branch is planned to offer a full range of bank, insurance, pension and investment services to both business and individuals. Whether one requires a current account, a deposit or savings account, or payment processing, we have a full range of services to meet all our clients’ requirements.

Market analysis

The strategy market analysis is based on the results of the analysis and evaluation of a number of factors, terms and conditions for market development. These influencing factors can be grouped as follows:

favorable terms and conditions; risks and problems of the environment; environment of the bank; the main objectives that the manager (the bank) sets’ resource security; Competitiveness, consisting of the sum of competing properties, UniCredit Bulbank is in

a favourable position compared to others.

Typical market in Bulgaria during the transition and economic crisis is that the population has low purchasing power, the shares of bad loans increased and banks try to renegotiate these loans, while at the same time try to encourage consumers’ savings and investment, offering a wide and flexible range of deposit and savings products.

The study and analysis of the market and this strategy account also for the psychology factor of consumer confidence in commercial banks.

Narrow market, administrative barriers, minimal opportunities for development and deepening global crisis in the global economy - these are just some of the problems faced by commercial banks.

Despite the difficulties, the Bank has rooted its reputation and traditions of the market.

The product concept of the current branch strategy relies on the main strategy of UniCredit Bulbank that customers will be attracted to products with higher returns on deposits, the maximum simplified procedure for allocation of residential mortgage loans, insurance against job loss as a guarantee that the first few payments on the occurrence of this event will be covered by respective bank assurance, securing and guaranteeing of customers from BNB as an extreme measure against possible bank failures, high reliability electronic payments, in particular the protections of debit and credit cards and electronic banking channels and many others. The aim of the bank is the cost of providing "high interest" on deposit products not significantly make more expensive credits and such as to achieve anticipated market share of sales.

Commercial concept focuses on the organization of business through aggressive promotion / sales. The trading concept is the advertising campaign, follow the principles, repeat purchase,

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Marketing Activities cross-selling etc. "Retain " programs aimed at retaining existing customers, offering them preferential terms and making them VIP clients.

Analysis of target market

What is today's customer?

1. Increasingly skittish and pay more attention to prices;2. has a little time and seek more amenities;3. There are higher requirements for the service;4. Loyalty is increasingly reduced.

Satisfied customers buy the product many times but are dissatisfied once.

Market segmentation:

by geographical region according to the type of customers according Characteristics trends

Analysis of Consumers

Customers of banking services naturally satisfy different needs so it is necessary to prioritize them, identify them exactly what they are.

Customers based on profitability Short-term customers Long-term customers

High-Income Clientsstrive to achieve more compromise and seek the necessary satisfaction

contact the customer, but not too oftentry to keep those users

Low-income clients

Seek immediate profitCash, interbank transfersExchangeExpress money transfers

increasing sales,if funds are lessstrict cost control

At UniCredit Bulbank VMA Branch the following tools are planned to be used to analyze and to explore the market:

inquiries with existing and potential customers collect reports of selling forces collect catalogues, price lists and brochures of competitors and others

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Marketing Activities Potential Clients

All local individual and SMEs in the area and outside it will be in the scope of the branch managers’ work.

The branch manager has undertaken research prior to applying for the position of UniCredit Bulbank VMA Branch Manager. The focus of this research was on the possibility for growth of business in general and on the geographic market the branch will plan to serve. The research results were very encouraging.

The findings of the study shows that the utmost targets in the very first months of the start of operations will be attraction of the following business customers:

Saint Ekaterina University Hospital, Specialized Hospital for Active Treatment at Sofia city, employing more than 200 people; It is expected the client to be attracted for payroll services trough personal primary contacts with the Executive Director of the Hospital Professor Gencho Nachev;

Ernst & Young (1 of the Big Four Audit Companies in the World, employing more than 210 professionals /with monthly salaries ranging from 2,000 BGN to 15,000 BGN/ in Bulgaria) – it is expected the company to change their office premises by end of June, 2011 to the Poligraphy Bulding, located on Tzar Osvoboditel Blvd, where there is a retail banking UniCredit Bulbank Branch, which can service the attracted by the VMA Branch Ernst &Young (EY) employees. Currently EY is being serviced by the closest bank branch to the current office premises of the company, located at BPS Sofia – Post Bank. Trough personal contacts, I plan to achieve with the Country Managing partner of Ersnt & Young the attracting of the company to become a pay-roll client of VMA branch and at the same time having the flexibility for being immediately serviced by a near-by located to the new EY office premises branch of Unicredit Bulbank;

Attracting of Greek community individuals (ex-paths – that will be part of the prestigious segment of clients in the branch) and business clients with which I have for personal historic reasons very good relations – the focus will be to expand the clients network of the branch in a sustainable way trough attracting prospective foreign individual and business customers;

Attracting SME clients sepcialized in the trade of oil and gas trade industry – that in order to comply with the current competition and technical requirements regulations in Compliance with the EU and statutory legislation in this field need some financing to renovate or diversify their business – trough primary connection I can secure immediately one client for payroll and other business services from the above described industry.

Other potential clients identified

Multielectronics AD– St. Georgy Sofijski” 10, leading company in Information technology and computer hardware;

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Marketing Activities Monolit 3 Ltd – St. Georgy Sofijski” 34, a company specialized in design and construction.

Since its registration in 1990, it participated in construction of various major projects – public and private buildings (local and international). The company has diversified heavy construction equipment. The designers department has extensive design experience, equipped with modern computing, allowing fast and high quality finished product, "Monolith H Ltd has specialists and workers in all specialties and perform basic design and construction with its own resources without hiring other subcontractors;

Data Pro Ltd. – St. Georgy Sofijski” 38, a company specilized in system integration and trade in IT products, hardware and other IT Services.

Thus, the findings of the study are useful in establishing the number of potential customers that UNICREDIT BULBANK VMA BRANCH might serve.

Opportunities under EU financed Operational Programmes in Bulgaria

To increase the customers number of the branch not only near-by located companies will be attracted which will avail of fast and convenient services, but also individual clients and SMEs that have won projects under the EU financed Operational Programmes in Bulgaria. According to reports on the progress of the Operational ROGRAMME “Competitiveness” (OP “Competitivesness”), Bulgaria lags behind in absorption of the grants and this year it is envisaged a number of schemes aimed directly at businesses to be opened. At the end of January the signing contracts for grant assistance has started under the "Technological modernization of SMEs”, and during this month of February the signing of grant agreements regarding the “Improvement of technologies for large enterprises” scheme has also started. Only under the scheme for SMEs nearly 200 companies were approved, that will need financing of their projects through bank loans, mainly because the requirements of the program stipulate that in order the grant to be allocated, the project has to be completed and paid in full by the beneficiary in advance, prior to the allocation of the EU co-financed grant. By financing such projects, the branch will attract new customers who will be given loans for financing of the execution of the projects under the terms for example that these loans will be partly repaid upon receipt of the grant and the remainder part will be repaid over time in compliance with the underlying forecasts for business development of the approved for financing companies (customers). Thus attracting new customers, the bank will provide for an opportunity to offer full banking services with all the additional income arising from it as cheap to attract bank resources available in the accounts of customers and their workers, tax revenue from transactions made in accounts, etc., including the possibility of granting consumer and mortgage loans and others.

In the second half of the year the second major wave of approval of projects under the OP “Competitiveness” and as well the opening of new long awaited schemes for developing of the business financed under OP “Competitivess” is awaited, these is seen by the future management of the branch as a precondition and an opportunity to achieve the set financial goals for the newly opened branch of UniCredit Bulbank.

Another way of attracting new customers SMEs is the Program for the Development of the Rural Areas, where eligible for financing under many and various funding measures are not only farmers but also companies outside the agricultural sector. The management of the new branch, given its extensive experience in the Ministry of Agriculture and Forestry and its professional background in profound understanding of the agricultural sector and the available financing trough EU funds in Bulgaria, will help securing of such clients interested in financing by the Rural Development Programme.

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Marketing Activities

Banking services related to the implementation of projects for SMEs financed under the EU Structural and Cohesion funds is for example the issuing of bank guarantee to the Managing Authorities of the Operational Programmes, based on which, the Managing Authorities pay to the beneficiaries of the Programmes (SMEs) advance payments from the grant, prior to even the start of any progress implementation on the project. Guarantees are an opportunity to generate profits without having to require a real commitment of capital attracted by the bank. There are many cases where the issuing bank guarantee for an advance payment under an EU funded project has led to cross-selling in the form of further pre-financing the project’s implementation by a loan.

Market accessibility

Probability of new entrants/substituteshigh low

Viability of the marketHigh

XX

Power of buyersLow

XX

The large number of customers that will do business with UniCredit Bulbank VMA Branch are expected to be from the medical and health care industry, given the location of the branch near- by big universities and health care institutions.

Marketing goals & strategies

Marketing strategies

The new UniCredit Bulbank Branch will apply the general marketing goals and strategies as set by the Headquarters, such as f.e.:

promotional actions reaching more potential customers. sponsor non-profit organizations, charities and community programs. professional sales communication. keep in contact with existing customers. market research projects to determine potential target groups. And others;

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Marketing Activities Personnel and the marketing concept

The branch selling forces must be able to carry out the philosophy and the strategy of the bank in order to be achieved the utmost targets at the bank branch level. This will be emphasized until the strategies are carried out as planned and the results are obvious. All new strategies are to be forwarded and discussed with the selling forces on a regular basis during the weekly / monthly meetings.

Responsible for the correct flow of information should be the branch manager.

Our focus will be in on the improvement of speed and quality of services in order to attract new customers compared to our Competitor No1 - branch of Central Cooperative Bank, located in close distance to our branch within 6 months of start of operations.

Sales management

Sales promotion plays an important part in the role of the modern bank as competition is fierce and returns can be very lucrative. The demonstration, sales and delivery of the services goes together with maximum customer loyalty.

To be able to fulfil such a function we need:

to maintain a high profile within our clients’ industries to be accessible (easy to find and parking facilities) the proper service mix the correct levels of rates/charges professional and ready to please personnel

The best method to sell a customer is by personal contact. In order to get the customer interested and motivated we combine an advertising and promotion plan with active service oriented personnel. All selling forces should be personally responsible for the overall care of all the clients in his / her account portfolio.

Our sales force [salesman] - No 1

Our telesales force [salesman] - No 2

[salesman] - No 3

Prospect objectives

Our objectives are to improve our prospects’ product(s)/service and to improve overall customer satisfaction and reduce maintenance costs where possible.

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Marketing Activities The objective of our prospects is to become the leader in retail banking in the area, where the branch is located as well as to reach break-even point even before the two years period as envisaged according to the Headquarters expectations and projections.

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Operations

7. Operations

UNICREDIT BULBANK VMA BRANCH’s identity

The identity of the bank will be made clear by its furnishings and decoration. Its modern and high-end style is reflected in the buildings, grounds, and the over-all design of the branch.

Location

We are going to be located at company address. This location has been selected because of its fair price, top location, esteem, size, visibility, and image. The location will also provide our employees as well as our customers with the necessary parking places. The location of the branch has been chosen because of the accessibility to existing infrastructure such. Developing the branch within this region will give us the opportunity to take advantage of a nearby large customer base.

Location Description

Immediate area

Type of area City Broad Centre, located near by Big University Hospitals and Medical Care Centres

Adjacent uses Residential, shopping centre (to some extent)Benefits Commercial area with excellent logistic facilities ProximityCustomer type Business and ConsumerTargeted population Approximately 120,000

Competitors Central Cooperative Bank, Postbank, DSK bank, Alpha Bank, First Investment Bank

Traffic volumePatterns Large boulevards in viewSituation

Pedestrians Commuting around the medical and health care university hospitals and centres

Periods Between 9:00 AM and 12:00 PM, as well as between 4;00PM and 7:00 PM is extremely busy

AccessibilityClose to major streets High streetEasy entrance/exit Open doors, easy to walk inVisibility

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OperationsLocation DescriptionFrom road Easy to see, big RED sign with logoAppeal of exterior Freshly painted UniCredit Bulbank styleLandscaping Grass gardens outsideOtherGrowth patternsZoning Blue parking zone, 3 rented parking places from the Municpality….

Premises

UNICREDIT BULBANK VMA BRANCH currently rents approximately 400 square meters building with a combination of retail and administration space.

Operating hours

The bank will be open for business at 8:30 AM and close at 17:00 PM. The bank will be closed for Christmas, Easter, Labour day, and other national holidays depending on the bank’s internal holiday working hours policy.

Parking

Parking facilities will be

commercial parking blue zone (fee per hour) leased parking lot for 3 cars

Security

The bank branch will be outfitted with a state of the art security system in addition to smoke alarms and a sprinkler system. This will include / includes a CCTV (closed circuit television) system for surveillance of all public areas such as the entrance well as all corridors and service areas. Professionally trained security personnel are part of the staff working in the branch.

Industry conferences and seminars

Company representatives attend and participate in several conferences such as advised and instructed by the management at the Bank’s Headquarters as well as national trade shows and conferences.

Print advertising and article publishing

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OperationsUniCredit Bulbank VMA Branch will follow the designed and adopted by the bank’s Headquarters advertising program and media mix such as newspapers, consumer magazines, trade publications, radio, television, direct mail, point of sale, other.

Advertising and promotion goals

The following goals and strategies will be used for the next 3 year(s) and are to be implemented in a detailed advertising and promotion plan.

1. Increase of initial sales

Strategies:o direct marketing: per customer group and per service typeo regional advertising campaigns: number of repeat cycle as set by Bank’s headquarters

2. Increase of repeat services

Strategies:o monthly leaflets to regular customers (by e-mail)o leaflets for customers at point of sale

3. Enhance the company name within each segment of the market

Strategies:o encourage regular customers to spread your fame

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SWOT Analysis

8. SWOT analysis

Our analysis is based on input collected during discussions with staff, distributors, customers, industry interviews and Internet research. We examine the following critical topics for UniCredit Bulbank VMA Branch:

1. business climate2. internal organization3. political factors4. social factors5. workforce6. ……

Summary of Strengths and Weaknesses

Strengths WeaknessesBusiness climate In our present day highly

commercialized {global} markets, banks can expect a positive business climate.

Rising prices.

Internal organization Our internal organization is well organized and able to withstand any shifts in the industry.

Loss of key personnel can be detrimental to the bank in the short term.

Political factors Except in certain countries with stringent laws, political factors are a small concern.

Social factors UniCredit Bulbank is well suited to handle any trends and shifts.

Workforce UniCredit Bulbank workforce is of the highest professional standard.

Loss of key personnel can be detrimental to the bank in the short term.

Economic Economic factors can affect the bottom line of any bank.

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SWOT Analysis

Opportunities - Possibilities / Threats - Problems

Problems /Threats

Possibilities /Opportunities

Economic Economical downturns can affect large accounts.

In an economically depressed environment there are opportunities for banks.

Internal organization Banks have a fairly established internal structure, which is not easily subject to change.

External factors There are few, if any, external threats to a bank.

Trends and fashion in the general population or in ease of regulation can be a boon to the banking industry.

Personnel Our dependence on key personnel could be a liability.

Personal bankingmixpricequalitycustomerscompetitorsdeliveryBusiness bankingmixpricequalitycustomerscompetitorsdeliveryOther servicesmixpricequalitycustomerscompetitorsdelivery

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Risk Management

9. Risk management

Important risks to consider are described below according to internal and external risk categories. A number of risk factors should be considered:

UniCredit Bulbank VMA Branch is an early stage business with a high dependence on key personnel, strong competition and operates in a market with high entry barriers. Successful branding is a key issue.

Early stage business. UniCredit Bulbank VMA Branch is newly formed and has no operating history. The Company’s management team has experience in the areas of business development and administration. The Company and its prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in an early stage of development.

Dependence on key personnel. UniCredit Bulbank VMA Branch’s performance is dependent upon the continued services of its founders and executive officers. This is of particular importance since the company is relatively young and still undergoing development and growth. Therefore, the branch is highly dependent upon retaining and motivating its manager. To offset this risk, in the future, the branch intends to carry a key-man insurance policy on key officers whose loss could have a materially adverse affect on the future of the business.

High entry barriers. The banking industry is a dynamic industry with many facets. This industry sector is reasonably competitive and not subject to rapid technological change. UniCredit Bulbank VMA Branch expects competition to persist well into the future.

Maintaining and strengthening the brand. Building, strengthening and maintaining the

UniCredit Bulbank VMA Branch brand is important.

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