The paper "Practical Guide to Company Management' Is a great example of a Management Case Study. There are many internationally recognized banks with high profitability levels. These banks achieved this by way of instituting proper strategies that saw to it the actualization of their set goals (Kalafatis, Tsogas and Blankson, 2000 p. 416-437). These highly recognized banks have such interesting strategies and policies that are their trademarks. One such highly renowned bank is the Handelsbanken bank. This is a Sweden based bank (The History of Handelsbanken, 2012 p. 3-4) that has over the years surprised many with its tremendous performance and resilience in the ever-changing global market.
This report, therefore, is dedicated to outlining the bank’ s success factors that include its culture and how it is kept alive, its entry models to the foreign markets, and the steps it took to avert the global-local dilemma. Bank’ s culture Handelsbanken is known for its unusual culture that makes it stand out from other international banks. By stipulating its culture, the bank refers to the way it carries out its operations. This fits with the description of culture in Chapter 6 by way of being part of the strategic choices made by the company (Johnson et al, 2017 p. 164).
The bank is driven by the need to outcompete its competitors and this is a culture that is instilled into the bank’ s employees throughout generations. The attractive bit of the bank’ s culture is the nature by which it drives the employees to be creative in the manner that they offer services to the customers. Among the bank’ s renowned culture are decentralization, cost-consciousness, and the ‘ conviction that a company that wants to outperform its competitors must be different from mainstream’ (Brunninge, 2016 p. 671). In decentralization, the company has gone out of its way to use oversees correspondent banks, small competitors and indebted companies to serve its customers oversee (2016 p. 671-672).
These mergers are managed by different managers and the highly decentralized organizational structures signify the importance of competition in the company as the small branches are evaluated and ranked according to their net income and percentage profits acquired annually. The decentralized nature of the company offers a competitive advantage in the form of major outlets from which the bank has maximized its profits and proceeds.
The decentralization of the company activities saves the company time in the procurement process and in providing timely decision-making process that does not involve the consultation of the central headquarters that would otherwise be flooded with request awaiting confirmation. Also, the use of the small competitors works to eliminate unnecessary competition and this puts the company as a monopoly by design and only leaves the major competitors that can easily act as a gauge of the company’ s performance by way of making performance comparison in the departments of interest. The other culture-specific to the bank is cost-consciousness.
This refers to being aware of how much money one spends in the course of their operation (Clough, Sears and Keoki, 2015 p. 36). The bank under the management of Jan Wallander significantly reduced the unnecessary expenses that were not directly liked to processes that were designed to attain customer satisfaction. This involved the scrapping off of some of the bank’ s traditions such as the celebrated anniversary to help maximize its resources; time and cost to achieve customer satisfaction.
This is a competitive advantage as the bank dedicated most of its resources to customer satisfaction and profitable investment options which significantly increased its profitability.
Brunninge, O 2016 Handelsbanken: Banking Done Differently, Sweden: Jonkoping International Business School.
Clough, R H, Sears, A. G. and Keoki, S S 2015 Construction Contracting: A Practical Guide to Company Management, 8th Edition, New Jersey: John Wiley & Sons, Inc.
Johnson, G, Whittington, R, Scholes, K, Angwin, D and Regner, P 2017 Exploring Strategy: Text and Cases, 11th Edition, Harlow, UK: Pearson Education Limited.
Kalafatis, P S, Tsogas, H M and Blankson, C 2002 ‘Positioning Strategies in Business Market’, Journal of Business & Industrial Marketing, Vol. 15 Iss 6 pp. 416-437.
Pride, W, Hughes, R. and Kapoor, J 2009 Business, Mason, US: South-Western Cengage Learning
The History of Handelsbanken 2012 [online]. Available in www.handelsbankshistorien.nu/Global/Dokument/historik_fran_shb/10299_Handelsbankens_historia_oct2012_ENG.pdf [17 Aug 2017].