Assignment on SWOT Analysis of Seylan Bank in SriLanka
1.
SWOT - Financial and Strategic Analysis of Seylan Bank
Successful
marketing strategies emerge from a comprehensive situation audit (Menon et al,
1999). The marketing strategies are evaluated from both external factors i.e. opportunities & threats and internal
factors i.e. firm’s strength &
weakness. On the other hand, the information on competitive activities and
customers collected through market
intelligence which helps to maximize the fit between the organization’s
capabilities & future opportunities (Day & Nedungadi, 1994). Firms
which successfully evaluate market intelligence will enjoy sound financial
performance (Jaworski & Kohli, 1993).
SWOT
has been used to evaluate the firm’s strategic situation in the competitive
marketplace (Porter, 1981). The SWOT analysis on firm’s marketing situation is
determined through internal & external strategic analysis which covers the
firm’s traits (strengths & weakness) and competitive factors (opportunities
& threats). Therefore, a SWOT analysis is essential for effective strategic
marketing. The environmental factors i.e. opportunities & threats are
uncontrollable whereas the internal factors i.e. strength & weakness are
seen as controllable for the organization.
The
comprehensive SWOT profile of Seylan Bank provides an in-depth strategic
analysis of the bank’s business and operations. The analysis will give the
clear idea about company’s key strength & weakness and the potential
opportunities & threats. This helps to formulate the strategies and to
better understand the competitors, partners & customers. SWOT analysis of
Seylan Bank is briefly discussed in the following points:
Strength:
o
Seylan Bank’s core strength is its
people who unitedly managed to overcome from crises.
o
Seylan Bank’s large innovative services
provided to the customers
o
Offered high interest rates &
additional bonus on minimum deposit amount.
o
Expand its reach to rural areas
o
Highly diversified customers’ portfolio
Weakness:
o
Overtrading
o
Bank’s undue expansion in limited
capital
o
Bank is not aligned with the current
customer needs & demands.
o
Sizeable amount of Non Performing Loans.
o
Poor asset management& capital
inadequacy
Opportunities
o
Independent identity with a completely
new board helps to boost the confidence of management as well as employees
o
Deliver higher financial value to its
customers & investors
o
Highly market focused
o
Strategic initiatives such as domestic
& international business opportunities
o
Empower disadvantaged group
Threats
o
Threat of recession contains global
banking failures
o
The intervention of monetary board is
the broader threat to economic equilibrium.
o
Liquidity risk
o
Competitors
SWOT
analysis helps to determine the marketing strategies & marketing planning.
It helps to determine the internal & external components which affect the
performance of the company at the market place.
1.
Core Competencies / Opportunities of Seylan Bank PLC
Seylan
Bank has updated and introduced huge array of products & services aimed at
winning the new depositors and expanding relationships with the existing ones.
The following core competencies of Seyaln Bank in terms of attracting the
customers are as follows:
v Attracting younger customers
o
Seylan
Tikiri Plus Children’s Accounts: It is launched in 1992,
the first Sri Lanka’s gift based children savings scheme. It has become the
nation’s most recognized brands, attracting thousands of young banking
customers. To start the saving among children, a wide range of gifts such as
school bags, bottles, gift vouchers etc offered to children.
o
Kids
Banking Day: Seylan Bank announced the last Saturday of
every month to be ‘kids banking day’.
o
Student
Savings Centre: Through this, the bank has associated
with various schools across the country.
v Seylan Sure
The
Bank has reintroduced the customer loyalty program, Seylan Merit Rewards with a
new brand name- Seylan Sure and a wider range of benefits for selected
categories of customers. This program offers gifts & cash rewards to all
individuals & joint holders of current & normal saving accounts who
maintain the minimum balance of Rs.20000/-.
v Attracting Older Customers
Seylan
Bank has launched the dedicated services for senior citizens offering premium
interest rates & other rewards branded as Seylan Harasara.
v Credit/ Debit Card Promotions
v Phone Based Services
v Web based services
v All sector loan services
v Margin Trading
An
investor is granted to purchase shares based on the value of existing
portfolio. As the total portfolio grows, the customers’ borrowing capacity
grows along with it provide further area of profitable investments.
a.
Strategy
Update
Seylan
Bank was able to manage from so many daunting challenges related with global
recession, inadequate capital etc. The following strategies implemented to
overcome the certain challenges which became an opportunity for the Bank to
further grow and prosper:
§ Implementation
of robust pricing system
§ Establishment
of independent credit risk unit.
§ Preparation
for strategic plan for information technology
§ Creation
of department for only serving SMEs
§ Centralized
the key business process across the Bank
§ Several
numbers of management committees formed
The
bank has centralized the wide array of standard work processes in order to
improve efficiency and avoid duplicity. The bank has also announced the
e-commerce solutions to enhance the customer interactions via electronic communication
channels. The certain initiatives are: Internet Banking, SMS Banking, Phone
banking to SMS and Internet Payment gateway. A Seylan Bank continue to peruse
its recovery plan, it is that employees feel engaged with strategy and
optimistic about their own future prospects. The overall aim of Bank’s
development strategy is to boost each employee’s abilities & future
potential, thereby growing the human capital across the enterprise. Business
level strategies focusing on retail banking, corporate banking, customer
segmentation and product market strategy & support services. Seylan Bank
has introduced new corporate program designed to stabilize, simplify &
strengthen the Bank. Business strategy is to put the customers’ first and then
started several initiatives :
§ The
introduction of centralized process which would enhance the quality, delivery
& the process time giving all value added services to the customers
§ Meet
the financial needs of the customers with the right balance between the
interest of customers & other stakeholders.
§ Continuous
dialogue with the customers to scope their experience with Seylan
§ The
feedback from customers help to improve the service quality at the entire
network
§ Apart
from customers, many other groups & communities would benefit from enhanced
level of financial literacy.
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