...Case Study #1: People, Service, and Profit at Jyske Bank Michael Cox MBAC 633-01 September 4,2014 Michael Cox MBAC 633-01 09/04/2014 People, Service, and Profit at Jyske Bank 1. Jyske Bank’s core values are rooted in treating its "three groups of stakeholders-shareholders, customers, and employees-with equal respect.” Jyske bank does this through: Common Sense, Being Open and Honest, Being Different and Unpretentious, Displaying Genuine Interest and Equal Respect for People, and Being Efficient and Persevering. 2. “First, you tell people what’s expected. Second, you check on their behavior. If they are buying expensive wine, you ask, “Why?” You explain what makes sense, and why. You do it in a way that tells them you honestly want to help them improve. Third, if there are continued problems, this person may not be right for the bank.” This quote refers to the philosophy of empowering the bank. This means that employees not just managers should make decisions if they are comfortable with them. The quote above refers to meal and entertainment expenses incurred on travel or with clients. Letting employees decide what is appropriate to expense allows them to feel in control. If the employee does not understand what is appropriate they may not be the type of employee for Jyske Bank. 3. Jyske Bank’s new “positioning” or competitive differentiation strategy is considered “Jyske Differences”. This is a focus moving from traditional product selling to a...
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...HP – STRONG BUY Equity Research • IT • 19 August 2011 • Jyske Markets Accounts This is a case recommendation. The company will be included in our equityresearch universe as long as it holds price potential justifying a BUY recommendation. When this is no longer the case, we will discontinue our coverage although our recommendation is ACCUMULATE, REDUCE or SELL. HP price fall is overdone We restate our STRONG BUY recommendation for HP and see yesterday’s dramatic price fall as an attractive opportunity to buy. This particularly applies to investors who are patient enough to wait for better market conditions/macro-economic improvement. HP lowers its outlook: as feared, HP (like Dell (STRONG BUY) earlier in the week) last night downgraded its full-year outlook. It was, however, a relatively moderate downgrade since the sales forecast was lowered by 1.6% and EPS by 3%. Whereas HP previously guided 2011 sales and EPS at USD 129bn-130bn and USD 5.0, respectively, HP now guides USD 127.2bn-127.6bn and USD 4.82-4.86, respectively. HP’s forecast is still a shade better than we had estimated (USD 127.6bn and USD 4.7). The reduced forecast reflects a sluggish willingness to buy among private business customers and that corporate customers are now more hesitant due to the rising macro-economic uncertainty. For Q4, HP guides sales at USD 31.1bn-32.5bn as well as Non-GAAP EPS of USD 1.12-1.16 compared with consensus at USD 33.9bn and USD 1.30, respectively. In addition, HP announced...
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...11439421 EXSERVS Analysis on Case 1: People, Service and Profit at Jyske Bank Jyske Bank, in the mid-1990s, was classified as a typical Danish bank and though it was described as a prudent and trustworthy bank, it was generally unremarkable and undifferentiated. However, after going through major changes, it has risen as one of the top banks in 2003. It has addressed the needs of its clients by promoting and effectively implementing the use of individualized and customer-approach services. Jyske Bank addressed the Listening Gap by assigning individual employees for each client. In this way, they were able to know more about their clients and through this, they were able to address the concerns of each client individually. They also believed that as each employee attends to the needs of each client, the employee gets to know more about the client since they are more comfortable in opening to the employee therefore, they gain more trust from their clientele thus, the clients feel more open and entrusts them with truthful information. They addressed the Service Design and Standards Gap by changing the general concept of banking at the time which was to be able to reach quota and sell as much as possible. Instead, Jyske bank concentrated on the needs of each client and promoted quality. It was a priority to provide maximum service at the highest quality for each client. There were also tangible differences in the bank and servicescape, like a cafe and tables...
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...Branch Design: JYSKE bank spent huge amount of money to redesign their bank branches. The purpose was not only to decorate it to look attractive. There were some other reasons to make their branches customer friendly. So that customers can take their services with a great ease and comfort. Some of the beneficial effects of the redesigning branches are - Interactional attractiveness - JYSKE bank were creating interactional attractiveness among valuable customers through architectural and design changes. They are delighting their waiting customers with coffee, fresh juice and with a play center for children. Signifying Quality - Employees layouts in the branches signifies quality of the service. Because, 3 or 4 employees were sitting at a single large round table to provide quick services to customers. Reinforcing Openness – IT system of all branches were designed to structure interaction between team members and customers. Because employees computer screen were placed like that customers can see them and ensured openness to customers. If conversation goes long there were meeting rooms those were ready to give services with feeling of home. Details: JYSKE bank tried to show that their employees are working with genuine interest to serve customers properly. For that they hired professional photographer who worked with employees and captured the...
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...Q1. What is JYSKE bank’s new positioning or competitive differentiation strategy? Ans1.) JYSKE bank’s new positioning strategy basically has been developed to reconstruct themselves as a customer oriented, customer centric bank. Their new differentiation strategy basically consists of four components. 1. Out of the Box service: They began to think out of the box and this led to them targeting specific segments of customers and thus developing a niche market consisting of what they considered the right set of customers. They assigned a small group of their bankers to every single customer to make sure that every customer received timely, effective service with a combined effort of the bankers. They also went a step further and made sure that all employees had ID Badges with pictures with them smiling and looking friendly. 2. Value Addition: They believed that being nice, making time, and showing customers that they truly care would enable them to add value to the service being provided. Through their out of the box thinking they were able to provide specialty services to their most valuable customers. They also believed that providing adequate training to their employees would help them to make informed decisions and would give them some level of authority. In addition to this they also offered their bankers attractive incentives which would in turn increase employee satisfaction and commitment. 3. Cutting edge: They also explored the IT solutions field and developed...
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...1. What is Jyske Bank’s new positioning or competitive differentiation strategy? Initially, Jyske Bank was a typical old-fashioned bank. Its competitive differentiation strategy was born out of its ‘values and differences’ discussed in the case Exhibit 4, which emphasized equality, transparency, honesty, respect and efficiency. The aim was to have these values embedded in each of the external customer-facing and internal aspects of its business and operations and distinguish itself from competition. In the mid-1990s, it went through a major transformation and positioned itself as a highly customer-focused bank, eager to foster relationships with customers, understand their needs and sell solutions accordingly. It only targeted less risky customers who could afford its premium pricing and were comfortable with the banks candid personality and portrayed image. This strategy went beyond the traditional product focused approach that most banks adopted. Jyske Bank differentiated itself on the service delivery aspect and invested in tools that would improve its employee’s ability to deliver solutions and increase the time spent with its customers. 2. What changes did the bank make to get to its new position? What effect did these changes have? To successfully implement its new customer focused strategy, Jyske bank had to make various tangible and intangible changes in their business operations, as well as how they delivered service to its customers. These...
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...American Industry Cooling System c. National American Industry Cooling System d. North American Industry Coding System 5. The book „Reengineering the corporation‟ is written by: a. Michael Hammer and James Champy b. Michael Champy and James Hammer c. Michael Douglus and James Ferrari d. Michael Ferrari and James Douglus 6. The book „Building the Data warehouse‟ is written by: a. Michael Doglus b. James Champy c. Bill Inmon 1 IIBM Institute of Business Management Examination Paper of Customer Relationship management d. James Ferrari 7. Which of the following is considered as the bible of database marketing? a. „Drilling High‟ b. „Building the Data warehouse‟ c. „The complete database marketer‟ d. „Drilling down‟ 8. CASE stands for____________ a. Customer Aided Software Engineering b. Computer Aided Software Engineering c. Customer Aided System Engineering d. Computer Aided System Engineering 9. In „BBB‟ B stands for____________ a. Bail b. Buffer c. Bureau...
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...that you do not receive? Describe how each service works and your interactions with them, showing why you think one is better than the other and how you might improve the not-so-good one. 2M Complete Exercise 1, page 29 of Zeithaml – your budget for goods vs. services 3M Complete Exercise 2, page 48, of Zeithaml – provider gaps 4S Comprehensive Case 6 (to be completed individually – this is not a team-presentation/prepare-a-brief case): “People, Service and Profit at Jyske Bank,” Zeithaml pages 572-590 – after studying the case write-up, answer these questions: a. What is Jyske Bank’s new positioning or competitive differentiation strategy? b. What changes did the bank make to get to its new position? Be sure to break down by tangible, intangible and communication categories. What effect did these changes have? c. Analyze Jyske Bank’s success using the Service Quality Gaps Model found in Chapter 2. What are Jyske Bank’s strategies for closing the 5 gaps in the model (Consumer gap as created by 4 Service Provider gaps)? d. In your opinion can Jyske Bank sustain its growth and success? Would you invest in Jyske Bank? The following items do not require a written response at this time: 5 Discussion Questions 1, 2, 3, 4, 5, 6 & 7, page 29 of Zeithaml 6 Discussion...
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...1- What is Jyske Bank's new positioning or competitive differentiation strategy ? They redefined their target : mostly danish families and people who can affford such a costly quallity of services Jyske Bank developped new technological and human ways to allow their customers resolving their problems There is a focus on the customer, everything is set to take care of them : employees' training, more time and more bankers, new spaces to welcome customers... They built a new Identity, to be recognizable, be peculiar (even if people can dislike that). 2- What changes did the bank make to get to its new position ? What effect did these changes have ? They dedicated an employee to a customer (again the idea of greater focus on customers) The creation of teams dedicated to provide the best service possible to the customer Employees are trained to become more helpful to the customers The implementation of Cafe's (the new spaces I quoted previously)makes the customer feel safer, better, home... The Bank implemented transparency, letting the customer aware of everything that happens The loan process has been changed to become a much more simple process : the branch used to need the approval of the regional level, which is no longer the case. Every branch has gained power and autonomy as the managers and employees did. 3- Analyze Jyske Bank's success using the Service Quality Gaps Model – Chapter 2 (eg what are Jyske Bank's strategies for closing each of the...
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...Jyske Bank Questions – January 14th JB Piron 1- What is Jyske Bank's new positioning or competitive differentiation strategy ? They redefined their target : mostly danish families and people who can affford such a costly quallity of services Jyske Bank developped new technological and human ways to allow their customers resolving their problems There is a focus on the customer, everything is set to take care of them : employees' training, more time and more bankers, new spaces to welcome customers... They built a new Identity, to be recognizable, be peculiar (even if people can dislike that). 2- What changes did the bank make to get to its new position ? What effect did these changes have ? They dedicated an employee to a customer (again the idea of greater focus on customers) The creation of teams dedicated to provide the best service possible to the customer Employees are trained to become more helpful to the customers The implementation of Cafe's (the new spaces I quoted previously)makes the customer feel safer, better, home... The Bank implemented transparency, letting the customer aware of everything that happens The loan process has been changed to become a much more simple process : the branch used to need the approval of the regional level, which is no longer the case. Every branch has gained power and autonomy as the managers and employees did. 3- Analyze Jyske Bank's success using the Service Quality Gaps Model...
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...here to link. Contact London Analysis July 2004 Phone 44.20.7772.5454 Janne Thomsen Anne Caris Samuel S. Theodore Jyske Bank A/S Market Position and Management Strategy STRONG FRANCHISE IN JUTLAND SUPPORTED BY A NATIONWIDE PRESENCE Jyske Bank (rated A1/P-1/B-) is the third-largest banking group in Denmark (after Danske Bank and Nordea Bank Denmark) with total assets of DKK116 billion (€15.4 billion) at the end of 2003. It focuses on servicing private individuals and small- and medium-sized enterprises (SMEs), offering them both its own and third-party products. The bank has domestic market shares of 6% in retail and 8% in the corporate segment. Jyske Bank has a nationwide presence, but its franchise is strongest in Jutland, where the majority of its 119 branches and its headquarters are located. CONSISTENT STRATEGY THAT FOCUSES ON THE DOMESTIC MARKET… Even though there is potential for an increase in market shares, Jyske Bank’s strategy is more focused on profitability than growth. Particular effort goes into generating fee and commission income. We take a positive view on income diversification because it minimises the effect of margin pressure and brings some stability to earnings – specifically in the case of Jyske Bank, as a considerable part of income in recent years has come from the revaluations of the treasury book. As a part of this aim, the bank has positioned itself as a provider of strong customer advisory services. This means that the branch network remains vital...
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...Case Studies and Exercises Lecture 2. The Rise of Multinational Companies Case: MUELLER: China Bound? (A), (B) and (C). (308-358-1, 308-359-1 and 308-360-1). Discussion Questions: 1. What are the primary ownership advantages of Mueller? 2. What are the major ways in which Mueller could serve the China market? 3. What are their primary advantages and disadvantages?? 4. If Mueller decided to invest in China, what would be the main functions of its subsidiary? 5. How could the risks involved in the FDI to China be managed? Lecture 3. The Myth of the Global Company Case: Lafarge: From a French Cement Company to a Global Leader (304-019-1) Discussion Questions: 1. What are the main characteristics of Lafarge’s internationalisation strategy and competitive competences and how do these differ from those of other cement companies such as Cemex and Holcim? 2. What were the assumptions underlying Lafarge's strategy and how justified were these? 3. To what extent is Lafarge a French company with foreign operations, as distinct from a global MNC, and how is it likely to develop as a MNC? 4. What are the implications of Lafarge’s growth for the internationalisation of other French firms? Lecture 4. Competing Capitalisms in the 21st Century Case: Messier's Reign at Vivendi Universal (9-405-063) Discussion Questions: 1. What was Messier's strategy in transforming CGE into Vivendi, what assumptions was it based on and how justified were these? 2. What does this transformation reveal about the...
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...Retail Banking Distribution Capitalizing on changes in channel usage Produced by the Deloitte Center for Banking Solutions Reinventing Retail Banking Generation Y Reinventing Retail Banking Series Consumer Trust Reinventing Retail Banking Series Catalysts for Change The Implications of Gen Y Consumers for Banks Building Consumer Trust in Retail Payments Laying a Solid Foundation Produced by the Deloitte Center for Banking Solutions Produced by the Deloitte Center for Banking Solutions The traditional retail bank is at an inflection point. The needs and expectations of customers are changing as quickly as the competitive landscape. Customers are demanding seamless, multi-channel sales and service experiences and not consistently receiving them. Simultaneously, other financial institutions and non-traditional players are looking for opportunities to invade this space or to redefine it through disruptive innovation. The result is forcing banks to examine a more balanced, integrated approach to the customer experience and growth. In this series, entitled Reinventing Retail Banking, the Deloitte Center for Banking Solutions looks at how banks must move beyond simply meeting their profit and growth goals to delivering more completely on the customer experience. Specifically, these articles will focus on: understanding customers needs; identifying emerging and profitable customer segments and strategies to attract them; creating the multi-channel banking experience;...
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...Retail Banking Distribution Capitalizing on changes in channel usage Produced by the Deloitte Center for Banking Solutions Reinventing Retail Banking Generation Y Reinventing Retail Banking Series Consumer Trust Reinventing Retail Banking Series Catalysts for Change The Implications of Gen Y Consumers for Banks Building Consumer Trust in Retail Payments Laying a Solid Foundation Produced by the Deloitte Center for Banking Solutions Produced by the Deloitte Center for Banking Solutions The traditional retail bank is at an inflection point. The needs and expectations of customers are changing as quickly as the competitive landscape. Customers are demanding seamless, multi-channel sales and service experiences and not consistently receiving them. Simultaneously, other financial institutions and non-traditional players are looking for opportunities to invade this space or to redefine it through disruptive innovation. The result is forcing banks to examine a more balanced, integrated approach to the customer experience and growth. In this series, entitled Reinventing Retail Banking, the Deloitte Center for Banking Solutions looks at how banks must move beyond simply meeting their profit and growth goals to delivering more completely on the customer experience. Specifically, these articles will focus on: understanding customers needs; identifying emerging and profitable customer segments and strategies to attract them; creating the multi-channel banking experience;...
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...har denna magisteruppsats äntligen tagit form. I samband med detta vill författarna naturligtvis tacka sina handledare för värdefull vägledning och uppmuntran. Stort Tack Curt, Jurek och Maria. Utan de kontakter som författarna haft med banker och reglerare skulle uppsatsen aldrig uppnått den kvaliteten eller tyngd den har idag. Författarna vill därför passa på att tacka intervjurespondenter, informationsförmedlare och andra som varit till stor hjälp och förmedlat värdefulla synpunkter. Dessa mycket hjälpsamma människor är: riksdagsledamöterna Sonia Karlsson och Lars Elindersson i Finansutskottet; Masih Yazdi på Finansinspektionen; Henrik Sörensen Andersen, Martin Gottlob och Heidi Sörensen på Danske Bank; Anna Halaby på Nordea; Anne Hasso och Petri Vertiö på Pohjola Bank; Annika Halldin och Else-Marie Nerep på Skandinaviska Enskilda Banken; Martin Blåvarg och Elizabeth Krämbring på Svenska Handelsbanken; Gunilla Filipson på Swedbank och slutligen Nina Ahnfeld-Rønne på Det Kongelige Bibliotek, København. 2 How to ensure that the nightmare won’t happen again Johansson & Söderlund ABSTRACT Title Date Subject Authors Advisor Keywords How to ensure that the nightmare won’t happen again 2010-01-08 Master Thesis, International Business Administration, 30 ECTS...
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