Strategy is a high level plan of an organization to achieve their goals which means that it shows what the organization wants to achieve and how the organization achieve their goals. In other word, strategy is a comprehensive plan that sets long term direction and guides resources allocation to accomplish an organization’s objectives. (LoPresti, 2009)
Strategy involve the purpose of the organization, the goals and objectives of the organization and the plans and methods to achieve the organization’s goals and objectives which we normally knows as vision, mission, objective, and tactics.(Anon)
Vision and Mission
Vision can be define as what the organization wants to be. It is a long term view and concentrates on the future. Mission explains why the business exists, and what it does to achieve its vision. In additional, mission supposed to be easily to understand by their staff, and customers. Defining organization vision and mission is paramount to its success. Most of the successful and profitable companies today proudly display and live theirs. (MCEACHRAN, 2011)
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Objective is the heart of a business. It give a clear indication of where the business is heading and what it is striving to achieve.(Pierrepont, 2012)In other words, objectives monitor the progress and keep the company focus on goals. The objective of organization should be measurable, realistic and achievable based on actual capabilities of the business. Besides that, objective should contain a specific time deadline and refer to a specific outcome to be effective.(E.Hamilton, 2001)
“Tactic is the planned and ad hoc activities meant to deal with the demands of the moment, and to move from one milestone to other in pursuit of the overall goals.”(WebFinance, Inc., 2013) In other words, tactic is something the organization willing to change to meet the local conditions. This means that tactics is a short term method which set by line management and taken to accomplish strategy. (Riley, 2012)
Strategy is seemed like a management’s game plan which to running the business by strengthening the firm’s competitive position, satisfying the customers and achieving performance targets. Besides that, Strategy is also about to satisfying the needs of stakeholders, to blending of internal resources and the direction in which the organization is going.
With the existence of strategy, the organization can determine the basic long term goals and the objective of the organization. Besides that, the organization also can determine the adoption of courses of action and the allocation of resources necessary to achieve the goals.
Strategy is concerned with deciding what business an organization should be in, where it wants to be and how it is going to get there. (Riley, 2012)
4.0 The Successful of Maybank Strategy in Market
“The pressure on banks in this region is tremendous. To attract consumers requires more than just innovative products. Products can be copied, and pricing can be reduced by aggressive competitors. We must also look at the timing and the way we communicate with our customers. Building a valued relationship by identifying and understanding their needs is the best way to attract and retain customers.” Said by Mohd Fadzil Bin Ismail, head of Customer Relationship Management for Maybank. (Teradata, 2011)
Maybank executives realize that the banking syatem nowadays had become a relationship-driven business in worldwide. Essentially, banking product are viewed as commodities, and the price can be reduced by aggressive competitors. However, the relationship between the bank and its customer can act as a key to success. Thus, Maybank had shifted its competitive strategy from concentrating on the product selling to focus on building the customer relationships.
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The goal of Maybank was to increase their understanding of customer and improve each customer’s experience during the interactions with Maybank, and thereby increasing the customers retention, loyalty and profitability. To achieve this goal, Maybank had launched a new Analytical Customer Relationship Management (aCRM) project in 2007. The goal of Analytical Customer Relationship Management was to help Maybank to better understanding their customers by communicating with them at the right time and using the right channel.
“Customer Relationships Management (CRM) is treated as a core function. We have invested in an Analytical Customer Relationship Management (aCRM) system which enables us to go beyond meeting customers’ current expectations, allowing us to anticipate their future needs in a proactive manner.” (Maybank, 2012)
The Analytical Customer Relationship Management has driving their business growth and increasing the customer satisfaction. With this strategy, Maybank had increased the marketing campaign success rate by ten times. “Lead generation times were slashed from weeks to hours, new campaign time to market was cut from weeks to days, and the average conversion rate jumped from a low of 0.3% to an average of 8% and a high of 30%. From the commencement of the project in August 2007 until late 2009, Maybank gained RM 3.0 billion (USD 961 million) in new sales.” (Maybank, 2010)
In July 2010, Maybank has reframed its vision and mission to accelerate its transformation journey. The new vision of Maybank is to become a leading regional financial services provider by 2015 while and the new mission is to humanise financial services from the heart of Asean. (Ang, 2010) To achieve this goal, the ability to offer a superior value proposition to customers is necessary and this is not a small challenge especially in the hyper competitive banking market.
In recent years, Maybank make strategic changes designed to enhance the consumer experience to improve their relationship with customers. Thus, Maybank had introduced a lot of product which designed to enhance the financial well-being of its customers.
Electronic Bill Presentment and Payment (EBPP) programme
A process that automate the generation of bills to third parties such as customers or business, and thhereby providing a comprehensive bill payment service to customers. (Maybank, 2011)
Foreign Currency Mudharabah-i (FCM-i) account
The first short-term Islamic foreign currency term deposit account based on the principle of Mudharabah (the concept of profit sharing between bank and its customer) in Malaysia.
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