...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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...1 Content 1.1 Question 1: The competitive differentiation strategy or new positioning of Jyske Bank embraced several aspects. The core values of the bank were focused on different aspects than other banks. For example: Being open, honest, different, and unpretentious towards costumers, showing genuine interest and equal respect towards costumers and being efficient and persevering. The bank focused on fulfilling the customers´ needs instead of just selling financial services. Jyske Bank was aiming for Danish families and small to medium sized companies as their target group. They focused on the personal service for their customers to make them feel comfortable and to make the interaction between bank and customer easier and more understandable. Jyske Bank attracts customers by making them feel like it “fits” for them. To sum it up, Jyske Bank was trying to treat the customers more personally than other banks by asking how their day went so far or how the family was, for example. 1.2 Question 2: The changes Jyske Bank had to make to get this new positioning were mostly to shift from a traditional product focused selling to a more solution-approached service. One tangible change was redesigning the bank. This means they changed the visual design of the installations of the bank to look more modern. Customers would sit on a round table on the same chairs as the bank´s employees to show that customer and employee are equal. It made customers feel welcome and more comfortable...
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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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...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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...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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...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 that would make...
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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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...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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...serious and long-lasting, like the one in Japan from 1991 to 2002. The most recent is the financial crisis that started in the US in July 2007 and is playing out in front of us today. It is also the most serious, systemic, and global since the Great Depression of 1932. A banking or financial crisis can be defined as a dislocation of the banking system where a significant number of banks and other financial institutions become illiquid and insolvent due to massive defaults on bank loans and other assets. An escalation of non-performing assets of banks will result in heavy losses depleting banks' capital. Banks become insolvent when their debt obligations (liabilities) exceed the value of their assets, i.e., the sale proceeds from their assets are inadequate to pay for their debts. Conditions preceding a banking crisis - financial deregulation Unbridled deregulation of the financial industry is at the heart of financial instability and crises. What began as a trickle became a wave and today it has broken loose as a financial tsunami engulfing the whole world. Prior to the 1970s, commercial banks and savings and loans associations (S&Ls) in the US were tightly regulated to protect depositors' money. They could not engage in risky lending, interest was not paid on checking accounts, and there were ceilings on interest paid by these institutions. These were progressively loosened beginning in the early 1970s. In 1982,...
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...1. DEFINITION: FOREIGN EXCHANGE One of the largest businesses carried out by the commercial bank is foreign trading. The trade among various countries falls for close link between the parties dealing in trade. The situation calls for expertise in the field of foreign operations. The bank, which provides such operation, is referred to as rending international banking operation. Mainly transactions with overseas countries are respects of import; export and foreign remittance come under the preview of foreign exchange transactions. International trade demands a flow of goods from seller to buyer and of payment from buyer to seller. In this case the bank plays a vital role to bridge between the buyer and seller. H.E. Evitt defined “Foreign Exchange” as the means and methods by which rights to wealth expressed in terms of the currency of one country are converted into rights to wealth in terms of the currency of another country. Foreign Exchange Department is an international department of the bank. It deals with globally and facilitates international trade through its various modes of services. It bridges between importers and exporters. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign country. This department mainly deals with foreign currency. This is why this department is...
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...dollars from bank costumers, and caused high unemployment rates. This has been going on for a long time and is only getting worse. Some say the government needs to stay out of the crisis and some say the government needs more regulation. In order to save our economy from the financial crisis, the government needs to enact proper regulations. The aim of those regulations must be to release the harms of corrupt business practices, keep bank customers from loosing money, and keep borrowers from being victimized by the fine print of their contracts. The first and most immediate problem of the financial crisis is continually increasing unemployment. The problem is best demonstrated by the threat is poses to the financial well-being of many people. “If there's no money flow, it's pretty hard to make more money and companies start to lay off workers” (Wikihow n.pag.). The whole crisis is like a cycle. Businesses make bad investments, consumers stop buying their product, and it hurts both the businesses and the customers. When the people stop buying, the businesses loose money and cannot pay workers. Therefore, unemployment rates go up. “Historical experience suggests that youth, immigrants, low-skilled and older workers are more likely to bear the brunt of rising unemployment“ (Scarpetta n.pag.). Another problem is, “job losses are spreading to sectors that they were not directly supposed to be” (Scarpetta n.pag.). Construction is among the most affected sector. “Many banks and other...
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...Cyclermate Ltd. Part 1 Historical background In 1988, Lewis Llewellyn and Dai Armstrong were made redundant as a result of the closure of their town’s steel works in south Wales. Both had been employed by the firm for more than 20 years. Lewis had worked his way up from apprentice to be chief mill engineer, and Dai had progressed from “office boy” to a senior marketing post. The men belonged to the local cycle touring club, and through this had become close friends. As the prospects for continued local employment were poor, they decided to use their savings to set up a bicycle manufacturing business – an obvious choice, given their shared interest, and combined expertise. The product they selected was a “traditional” upright cycle, following a design typical of the 1940’s and 1950’s. They believed that there would be a strong “niche” market for such a product, given the upsurge in interest in cycling, and increasing consumer interest in “retro” styles. Working in Lewis’s garage, they built their first prototype. Dai persuaded a local cycle shop to put this on show. Within week they had two orders, and the business was launched. By the end of 1990, the business had grown to such an extent that they were unable to meet demand. Taking advantage of the relatively low prices of commercial and industrial property, they purchased a disused 15,000 square feet warehouse with an included 2,000 square feet of office accommodation for £240,000. The buildings were big for their...
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...loan case, now being dubbed as Hallmark Scam because of its huge size and indifference, deliberate or otherwise, on the part of the management of the country’s largest public sector bank, has come as a real shocker. As the details of the scam are coming out gradually, the people concerned are suspecting that something has gone seriously wrong inside the state-owned banks. The Hallmark corruption with Sonali bank is one of the biggest scam of Bangladesh. The finance minister's initial comment on Bangladesh Bank's authority to recommend the change is not justified. The managerial system errors was the lack of audit teams; special audit teams, investigation team and supervision teams of all the government, non-government and specialized banks and they should be trained to be better adapted. The faulty system of our country led this thing to take place. The people working under the Sonali bank were not fully ethical and loyal and that is one of the reasons for such corruption taking place. The minister, however, did not comment on how strong the presence of political appointments could be on the boards of the state-owned commercial banks (SOCBs). A central bank official alleged that some board members were also involved in the Hall-Mark scam, adding that the Bangladesh Bank informed the finance ministry about it but they were silent where they should have taken necessary steps to get rid of such fraudulent activity. People who have experiences in finance...
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