...1.Capitec Strategy was to keep the original building blocks of affordability, accessibility, personal service and simplicity. The resource drivers and capabilities for Capitec were the following: Labour: Capitec grew its staff headcount by over 2000 by 2006. This was achieved by closing down branches that were located in “some what sleazy locations and run by less desirable personnel to with 75% branches closed down or relocated to better surroundings and transformed the organisation into a more formalised structure. Capitec also realised that if clients were less informed on banking, the more support was required. In an effort to connect with Capitec customers in the client’s home language, Capitec recruited staff from the areas surrounding its branches and trained the required skill. This would yield competitive advantage by providing the access to important market areas while making a significant contribution to the perceived customer benefits. Technology: Capitec identified the key needs such as price, real-time delivery, and simplicity through paperless card driven processing and changed consumer perceptions that banks were expensive and slow. Technology was used to keep down costs by cutting out paper work and the administrative activity associated with it and saved significantly on these expenses. The alliance with Checkers and Pick Pay encouraged customers to perform cash withdrawals at point of sales terminal costs of R0.75 and clients were able to check their balances...
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...Mabatho Letsoenyo Capitec Assignment 20 April 2013 1. What resources and capabilities made Capitec successful? Capabilities- The individuals who came together to start Capitec came from a strong financial and micro-lending background; they had a very good understanding of the banking systems. They started this business well equipped. Resources-Capitec was originally capitalized with R350 million was worth R2.2 billion and the results which were released in September 2006 showed a 23% return on equity, its profitability increased by 71%, and the bank itself had grown by almost 50%. Their business model was built on 4 pillars, Accessibility, Affordability, Simplicity and Personal Service. They used less space, and resources for example cashless transactions, security but not installing a bullet proof glass and less risk of robberies, Cost were saved buy only having 1 ATM at each branch, location played a very important part in Capitec’s Business Model, they went were the mass were, and had working hours that were accommodating to its customers. Capitec also made alliances with retailer’s i.e. Shoprite ect which people can withdraw cash. Capitec’s aim was to change its customer perception from thinking it was only a micro-lender. 2. As some of the customers become affluent and demand more sophisticated products such as mortgage loans, should Capitec increase its product range? Currently there is a greater risk for the Capitec in offering an unsecured loan...
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...analysis namely the Boston Matrix, Porter’s five forces, Grant’s key success factors, the Ansoff Matrix, a micro and macro-environment analysis, industry and segmentation analysis, market positioning analysis, innovation and new product development and the marketing mix. Presumably, every organisation would be responsible to its stakeholders and shareholders and formulate its strategy being informed by such business investigation/intelligence. In the absence of such information in the Capitec Bank: Low-Cost Banking for Joe Average case study (Townsend and Mosala: 2006), such is going to be assumed. The facts and figures from 2002 to 2006, point to the success in profit and volume growth of the Capitec strategy of ‘providing low-cost basic banking services to the lower to middle-income market, and to create a bank that offered everything to everybody.’ From public source information, the Fin24 and BusinessLive (2011) the focus on banking the unbanked remains a key national issue. While Capitec led market share by 2010, competitor activity by the big four banks was increasing in that market segment. Government legislation in banking services and its related initiatives challenged Capitec’s strategy for penetration of that segment. The strategic issue for Capitec’s consideration then would be: would that segment remain attractive and sustainable for it going forward?...
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...this chapter you should be able to: 1 Understand what an organization is and why business organizations exist. 2 Define what a manager is and what the management process involves. 3 Explain. 4 Understand the differences between the various levels of management. 5 Understand the three main managerial skills and at what managerial level they are dominant. outline A South African insight: Capitec Bank: Meeting the needs of customers by making banking affordable and accessible. Managers and management l Human needs and wants l What is an organization? l Organizations as systems What managers do l General managerial tasks l Productivity and organizational performance l What is a manager? l What is management? l Scope of management What managers do l Managerial functions Managerial roles Levels of management l First-line managers l Middle managers l Top managers Managerial skills Technical skills Human skills Conceptual skills key terms and concepts Chapter summary Questions for discussion and exercises for competency development 4 Management 3 e A South African insight: Capitec Bank: Meeting the needs of customers by making banking affordable and accessible A savings culture does not exist in South Africa particularly among low-income earners. Two reasons for this are the low savings returns and the high administration costs of having a savings account. The average client incurs fees and costs that exceed the savings returns in an account on an annual basis. Transaction...
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...Standard Bank’s Inclusive Banking Model – An Overview Prepared by Pierre Coetzer and Nicolas Pascarel, Reciprocity A B4D Pathfinder Case Study September 2012 Table of Contents 1. 2. 3. 4. 5. 6. Executive Summary ....................................................................................................................... 3 The Changing Face of South Africa’s Retail Banking Landscape ................................................... 5 Standard Bank’s Inclusive Banking Strategy: Combining The Power Of Technology With Informal Economic Networks ...................................................................................................................... 9 Implementing the Model ............................................................................................................ 14 Value Proposition, Impact & Future Prospects of Standard Bank’s Inclusive Banking Strategy 20 Conclusion ................................................................................................................................... 25 ANNEX I: .............................................................................................................................................. 26 ANNEX II: ............................................................................................................................................. 28 2 1. Executive Summary The private sector with its skills, knowledge, experience and resources, can play a key role in accelerating...
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...Global Social Finance Research 02 May 2012 Volume Growth and Valuation Contraction Global Microfinance Equity Valuation Survey 2012 J.P. Morgan Global Research J.P. Morgan Social Finance Yasemin Saltuk Yasemin Saltuk AC (44-20) 7742-6426 (44-20) 7742-6426 yasemin.x.saltuk@jpmorgan.com yasemin.x.saltuk@jpmorgan.com J.P. Morgan Securities Ltd. J.P. Morgan Equity Research Frederic de Mariz (55-11) 4950-3398 frederic.de.mariz@jpmorgan.com Banco J.P. Morgan S.A. CGAP Jasmina Glisovic Henry González This report is the result of a collaborative effort between CGAP and J.P. Morgan. J.P. Morgan analysts are solely responsible for the investment opinions and recommendations, if any, in this report. See page 21 for analyst certification and important disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that See page 21 for important disclosures. the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. www.morganmarkets.com Global Microfinance Equity Valuation Survey 2012 Global Social Finance Research 02 May 2012 Background & Acknowledgements Equity capital flows into microfinance have been increasing for many years, with both retail and institutional investors showing interest in this sector of financial services. Despite this growth...
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...ESSAY ONE MAKING CONNECTIONS DRAFT Bottom of the pyramid (BOP) refers to refers to the poorest yet largest economic group in the world as it shows on figure 1. This was a term introduced by http://recyclewashington.files.wordpress.com/2010/05/graphic-world-economic-pyramid-web1.gif?w=510 http://recyclewashington.wordpress.com/category/economics/ These income values are based on the purchasing power in US dollar, and the BOP represents the tier 4 which earns less than $1,500 a year per head. This economic group however represents 4 Billion people which is larger than all other groups combined. Countries that can be referred to as BOPs include countries like Niger which has a GNI per capita of $701 http://hdrstats.undp.org/en/countries/profiles/NER.html or Afghanistan with a GNI per capita of $1000 http://hdrstats.undp.org/en/countries/profiles/AFG.html. There is a high correlation between countries with low GNIs http://hdrstats.undp.org/en/indicators/103606.html and Third world countries http://www.nationsonline.org/oneworld/third_world.htm therefore we are able to identify similarities amongst them whether cultural, environmental or economic. The Bottom of the pyramid strategy is a modern strategy introduced by Coimbatore Krishnarao Prahalad. He believes that that multinational companies not only can make money selling to the world’s poorest, but also that undertaking such efforts is necessary as a way to close the growing gap between rich and poor countries. Key...
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...SUMMARY: FROM COMPETITIVE ADVANTAGE TO CORPORATE STRATEGY: 1. Passing the Essential Tests a) How Attractive Is the Industry? An attractive industry with a high ROI will be difficult to enter because entry barriers are high, suppliers and buyers have only modest bargaining power, substitute products or services are few, and the rivalry among competitors is stable. An unattractive industry like steel has flaws i.e. many substitute materials, powerful and price-sensitive buyers and excessive rivalry that may be state supported. b) What Is the Cost of Entry? Diversification cannot build shareholder value if the cost of entry into a new business eats up its expected returns. A company can enter new industries by acquisition or start-up. The more attractive a new industry, the more expensive it is to get into. c) Will the Business Be Better Off? A corporation must bring a competitive advantage to the new unit, or the new unit must offer potential. When the benefit to the new unit comes only once, the parent company has no reason to keep the new unit over the long term. Once the results of the one-time improvement are clear and the diversified company no longer adds value, sell the unit and free up corporate resources. 2. Four Concepts of Corporate Strategy – (a) Portfolio Management: Is based primarily on diversification through acquisition. The corporation acquires sound, attractive companies with competent managers who agree to stay on. The acquired units are autonomous...
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...ABSTRACT This report deals with “internet banking” Its scope, advantages and background ACKNOWLEDGEMENT First of all we owe dear Almighty Allah who gave us strength, knowledge and tenacity to undertake and successfully complete the report. For help in preparation of this report we also extend our gratitude to, Sir Khalid Jamil Ansari who was very cooperative, benevolent and relent throughout. In the absence of his guide lines which were very help full without it we won’t be able to prepare such a report which now is shaped as an ostensible report. Initially this report writing assignment was appeared as an arduous hindrance but the confidence he showed and the way he motivate us develop perk in us and we are finally able to complete this initially abstruse looking assignment. 1. INTRODUCTION Web Banking or Internet Banking is a term used to describe banking transactions that are performed via a secured Internet application. Web Banking transactions include such things as paying bills, transferring funds, viewing account statements and paying down loans and mortgages. Although Web Banking has been popular among young Internet-savvy people for many years, its popularity is expected to grow rapidly as Internet usage grows internationally and people discover the many advantages that it provides. Web-Banking.org provides an overview of Internet Banking. It discusses conventional and virtual banks, e-banking services, Internet security and the cost/benefit considerations...
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...SUPPLY CHAIN PRACTICES OF CTI Education Group TABLE OF CONTENTS Introduction ……………………………………………………………………….. Page 02 Contacts at CTI …………………………………………………………………... Page 02 Supply Chain Management …………………………………………………….. Page 02 Competitive Advantages ………………………………………………….…….. Page 03 Core Product / Service Offerings ………………………………………………. Page 04 Description of CTI Education Group’s Students …………………………….. Page 05 Supply Chain Strategy ………………………………………………………….. Page 06 Are CTI Group’s Supply Chain and Product Offering Aligned? ……………. Page 08 Supplier Relationship Management …………………………………………... Page 08 CTI Education Group’s Suppliers................................................................ Page 09 Supplier Involvement in CTI Education Group’s Operations....................... Page 10 Supply Chain Integration and Management ………………………………... Page 11 Conclusion................................................................................................... Page 13 Bibliography ……………………………………………………………………… Page 14 Appendix A (Permission from CTI) ……………………………………………. Page 16 Appendix B (List of Suppliers) …………………………………………………. Page 17 Appendix C (Campuses) ……………………………………………………….. Page 18 Appendix D (Career Paths) ……..……………………………………………… Page 19 Appendix E (Trade & Industry) ………………………………………………… Page 20 INTRODUCTION For this assignment I have elected to case study CTI Education Group. Reasons for choice: 1) While...
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...30 May 2010 Pg 2 THE YOUTH RULE! Pg 9 KNOWLEDGE IS POWER Pg 17 NIKE BOUNCES BACK 2. GENERATION NEXT 30 May 2010 MASTERS OF THEIR UNIVERSE: MEET THE GROUP THAT ACCOUNTS FOR MOST OF OUR POPULATION WHETHER YOU LIKE IT OR NOT ... Today’s youth rule! Picture: JEREMY GLYN HOW AND WHY THE STUDY WORKS ● Their annual direct spend, as per the study, is over the R95bn mark ● They are the key household inf luencers — to the tune of more than 60% ● They are the future consumers of all brands “They are mavens who give a good sense of the ‘next big thing’. They provide strong indicators of where the market is going” JASON LEVIN, MD OF HDI YOUTH MARKETEERS W HY should the world care if nine-year-olds prefer Milo cereal to Coco Pops? So what if teens want to watch Trace this year when they were hooked on MTV last year? And if youngsters’ primary device is a cellphone, is that really going to change the world? Although less often than before, we are still confronted by “youth cynics” after the Sunday Times Generation Next study is published every year. Their concern, generally, is that youth are still a relatively marginal market segment, so why do a brand preference study? South Africa, like most developing countries, has a very young population — more of our citizens are 22 — the age limit of the study — or younger than those who are older. So, with a sample set aged between eight and 22, the study tracks the consumer behaviour and...
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