Growth and Expansion of DBS Bank
Strategic management helps in maintaining the competitive advantage of the organizations in order to ensure the growth and expansion of the businesses. DBS Bank has taken steps to identify the different prospects of the organizational expansion through the assessment of the internal and the external environments. DBS bank is a multinational organization, which is situated in Marina Bay, Singapore. The organization offers banking and financial services to the clients as per the requirements of the same. The growth of the organization is visualized through the assessment of the total assets of the organization, which is 518 billion computed by the end of the fiscal year 2017. On the other hand, the increase in the net income from 4,238,000 (2016) to 4,371,000 (2017) clearly denotes the growth of the organization. The projected net profit of the organization as per the 2017 report is 4.39 billion which has grown dynamically (Sia, Soh and Weill 2016). The quality of the services and the identification of the needs of the customers have contributed largely to the steady growth of the business. On the other hand, the identification of the market prospects for expansion of the organization and growth of the same is supported through the internal and external environmental analysis. The organization is considered to be one of the largest banks in South East Asia. The different services that are offered by the organization relates to consumer banking, asset management, securities brokerage and the like in Singapore and Hong Kong (Fitzgerald 2014).
The purpose of the report is to identify the different environmental forces that are faced by the organization while operating in the relative markets. It will be helping the organization in maintaining the competitive advantage of the same while operating in the international markets. The assessment of the internal and external environments of the organization will be helping the organization in maintaining the different modifications in the systems and processes of the business undertakings.
The strategic management of the organization aims at maintaining the congruity between the demand that is faced by the business and the overall processes of the firm. The identification of the capabilities of the organization to bring in changes in order to support the sustainability of the same helps in maintaining the competitive advantage (Phipps 2012). Change might be in the fields of technological innovations or modifications in the processes that are undertaken by the current businesses. It helps in adhering to the static growth objective of the businesses while operating in the diverse markets (Kroon, Van De Voorde and Timmers 2013). The different strategies that are undertaken by the organizations are based on the consideration of the long term objectives of the business. Profit making is the short term objective, whereas the sustainability of the organization in the highly competitive market structure is the long term objective, which will be helping the business in maintaining the loyalty of the customers and the goodwill of the business firm.
Internal and External Environmental Analysis
The different changes in the strategic decision making of the DBS Bank are based on the identification of the internal and external environments faced by the organization. One of the most successful innovation that is undertaken by the organization is the digitalization of the banking, which has helped the organization in optimizing the service quality that is provided by the same as per the needs of the customers (Popovi? et al. 2012). It might be taken as one of the most successful strategic decision that is made by the organization considering the technological innovations that are undertaken by the rival firms. It has helped the organization in sustaining in the highly competitive Asian markets. This section aims at identifying and assessing the diverse internal and external environments that are faced by the organization in order to maintain their sustainability and competitive advantage while operating in the competitive market structure.
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Strengths
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Weaknesses
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Opportunities
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Threats
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The organization has a goodwill in the international markets, which has helped the same in maintaining a competitive advantage while operating in the international markets. The digitalization of the banking services and the integration of the advanced technologies in the processes have helped the business in maintaining the uniqueness of the same. On the other hand, the CSR activities that are extended by the organization through empowering the communities and uplifting the regions have helped in maintaining the competitive advantage of the organization. The suitable risk management team of the business has helped in controlling the economic instability while operating in the diverse markets.
The major weakness of the organization is due to its exposure to weak oil and gas services. The non- performing assets that are held by the organization has affected the performance of the business. The uncertainty regarding the asset quality has affected the functioning of the business as per the objectives of the same. The intra- regional trade and expansion of the business is taken as an expansion opportunity for the business. The cross- border financing and provisions of undertaking proper functioning of the systems of the business helps in maintaining the different levels of change in the systems of the firm while operating in the diverse economies (Esen 2013). On the other hand, the emerging economies of the world have helped in maintaining the greater scopes of expansion of the bank (Munro 2013). The emerging economies, through the emergence of the multinational corporations, will be requiring financial services from the bank. It will be helping the bank to expand their business in the different inter- border segments of the economies. The intense competition in the market posed a serious threat to the growth of the organization in the different markets. However, the availability of diverse financial services has helped the organization in maintaining the competitive advantage of the same over the rival firms.
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SWOT Evaluation
The strategic decision making system of the organization will be helping the same in maintaining the proper functioning of the business as per the objectives of sustenance and growth. The technological advancement of the organization has helped the same in maintaining the proficiency of the functions. It has helped in redesigning the services that are offered to the clients of the business, which helps in maintaining a balance as per the expectation of the customers (Pangarso 2014). However, there are different issues that are faced by the organization relating to the intensified competition in the market and the NPA in the oil and gas undertakings. It has affected the organizational performance. Therefore, the management of the organization must take steps to identify the different issues and thereby assess the same in order to bring in changes in the systems and operations. On the other hand, the implementation of dynamic decision making model will be helping the organization to calibrate the objective of bringing forth modifications in the business based on the environmental changes. The model will be helping the entrepreneurs in assessing the different possible alternatives and thereby culminating into a proper decision for the firm. The rational decision making system of the organization will be helping the same in maintaining the competitive advantage of the firm based on the evaluation of the internal and external environment. It will be helping the organization in analyzing the capabilities and competencies that might be faced by the same while operating in the international markets (Hubbard, Rice and Galvin 2014).
Conclusion
Therefore, from the above analysis of DBS bank’s internal and external environments it may be concluded that the business firm has a competitive advantage over the other rival firms relating to the technological innovations. The technological innovations have helped the organization in sustaining in the highly competitive market structure. On the other hand, the proper functioning of the systems of the business is based on the assessment of the competition that is faced by the firm relating to the different attributes of the change in the systems of its functioning. The report aims at identifying the different aspects of strategic decision making systems that are undertaken by the firm as per the assessment of the internal and the external environments of the business. It also depicts the different weaknesses that the firm is required to consider in order to grow as per the service offerings of the business. The challenges that are faced by the bank while operating in the South Asian regions are regulated by the different policies. It affects the growth of the organization. However, the growth of the organization is manifested through the goodwill of the business and the diversity in the financial services offered by the same.
References
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