Strategic Planning the Internationalized Economic Research Paper

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5. Strategic recommendation

The strategic possibilities mentioned above are all important and have the ability to provide the financial institution with long-term stability. Nonetheless, since the company possesses limited financial resources at the time being, but also due to the complexity of the external and internal environments, not all four strategies can be developed. It is at this stage necessary to implement strictly those strategies which serve the immediate needs of the company and the stakeholders. In order to identify these needed strategies, it is important to assess them through the lenses of four specific criteria:

Resource availability to implement the strategy

Urgency of strategy implementation and Results availability of the strategies.

The table below reveals the criteria-based assessment of the four strategies.

Resource availability for strategy implementation

Urgency of strategy

Expectancy of results (in the short-term)

Organizational ethics

High

High

Medium

Diversification

Low

Medium

Low

Infrastructure developments

Low

Low

Low

Human resource management

Medium

High

High

The diversification and infrastructure strategies require large investments, currently not available for the firm. Also, they generate results within the long-term and they are less urgent. This virtually means that the strategies would be taken into consideration for future efforts, but would not be implemented for the time being.

The organizational ethics and the human resource management require less financial resources to be implemented and they also generate more immediate results. They are both urgent in order to restore trust and to ensure that the change processes currently undergone by the company -- and the change processes that would follow -- are well implemented by the organizational staff members. In this setting then, it is recommended for a combined strategic approach to be developed, through which emphasis is placed on ethics and human resource management.

6. Factors affecting the strategic recommendation

The strategic recommendation to focus on human resources development and the organizational ethics is useful as it addresses the problems of the company in a quick and efficient manner. Nonetheless, before implementation, the strategy has to be discussed in terms of several elements which could impact it. These include the organizational values, the objectives, the mission and vision, future management and evaluation procedures. Each of these factors is addressed below:

The Irish Bank Resolution Corporation is a newly formed entity, resulted from the merger or the Anglo Irish Bank and the Irish Nationwide Building Society. It was only created during the current year and has yet to establish its core values. Based on the history of both entities and in light of the strategic recommendation previously formulated, it is recommended that the firm's core values be centered on ethical conduct and stakeholder satisfaction.

The mission and vision of the entity have yet to be developed, but they could be created around the following lines:

The Irish Bank Resolution Corporation strives to become the preferred choice of commercial and individual customers in Ireland and outside it.

The mission of the Irish Bank Resolution Corporation is to create a positive environment in which people are rewarded, customers are satisfied and the public is acknowledged and supported.

Similar to values, mission and vision, the Irish Bank Resolution Corporation has yet to establish its future management objectives. These could revolve around the following:

The internal consolidation of the new firm within two years of operations

The preservation of the combined market share of the Anglo Irish Bank and the Irish Nationwide Building Society

The reduction of the organizational debts by 30 per cent within the first two years of operations

The recapitalization of the bank by itself, without the aid of the government, through processes such as debt restructuring and internal expenditure cuts

The generation of trust from customers, investors, the government and the general public

Finally, in terms of evaluation, it would be necessary for a specialized team to be formed. This team would integrate new managerial staffs who would supervise all of the organizational operations. The team would evaluate the ability of the operations to attain the pre-established objectives and would intervene to readjust the processes whenever necessary. This would be applicable with all organizational efforts, including the strategic effort to restore ethical behavior and superior human resource management programs.

7. Implementation of the strategic recommendation

The newly formed Irish Bank Resolution Corporation would implement a strategic course of action aimed at increasing their ethical conduct and improving the commitments and efficiency of the staff members. The plan to implementing this action is revealed throughout the table below, which includes both the gradual steps, the schedule, but also the measurement system specifications.

Strategic step

Schedule

Monitoring and evaluation

1.

Training programs on ethical conduct

Two weeks, starting from December 1st

Testing the ethics knowledge of employees before and after the raining sessions

2.

Development of an organizational culture based on trust and high moral standards. At this stage, great emphasis is placed on leadership by example.

Ongoing process, starting immediately

Ongoing evaluations of the evolution of the workplace climate

3.

Employee motivation through a wide array of invectives (examples are presented below)

Ongoing, starting as soon as possible

Assessment of the levels of employee satisfaction on the job, commitment to the firm, performances and overall organizational results. Positive results are expected to include greater staff support in attaining organizational needs and the creation of a stronger internal climate.

These incentives could include:

- Performance-based pay, both salary as well as wages, to support constructive competition and performances

- Flexible working schedules to allow the employees to balance work and professional responsibilities (Schermerhorn, 2010)

- Support for career growth and development, such as learning support or promotional opportunities

- Employee training to increase both performances as well as morale (Murugan, 2007)

4.

Employee empowerment and involvement in decision making to capitalize on intellectual value

Immediate application

Evaluation of employee levels of trust, turnover, loyalty, as well as the quality of the decisions made by the company

5.

Support communication within the working environment

Immediate application

Evaluation of the communication skills and the means in which information is shared within the company at both levels of functional employees and managerial staffs

6.

The creation of internal materials to circulate and inform all staff members of the company's values, ethics and HRM policies

One month for the creation of the materials, based on thorough documentation

Ongoing circulation for all employees, including the older and the newer ones

Clear documentation of the materials, promotion of the information presented in them and assessments of how well the staffs recognize and apply the information in the materials.

Overall, the scope of the proposed strategic effort is that of creating a stronger company from the inside out. The strategies recommended would aid the organization to establish higher quality relationships with the various categories of stakeholders, and to better consolidate its position. For the time being as such, it is recommended for the Irish Bank Resolution Corporation to focus on internal processes of consolidation and strengthening and to consider other strategic efforts in the future.

8. Conclusions

The contemporaneous society is currently facing the devastating impacts of the internationalized economic crisis. Ireland was one of the regions mostly affected by the crisis, with the most severe hit having been taken by the financial sector.

The Anglo Irish Bank, one of the leading Irish banks, has been faced with the possibility of bankruptcy, which has only been avoided through nationalization. A similar fate was reserved for the Irish Nationwide Building Society, and in order to reconsolidate their positions within the Irish banking sector, the two banks merged and formed the Irish Bank Resolution Corporation.

The Irish Bank Resolution Corporation is a newly formed entity, without a clear scope, direction or vision. In this setting, a recommendation has been made for the company to focus on strengthening its internal environment by implementing an ethical approach to business and by developing their staff members. As the company withstands the crisis and reconsolidates itself, it should move on to the expansion of its presence and the diversification of its operations.

References:

Carsewell, S., 2010, Fingleton's successor says events at INBS an outrage, Irish Times, http://www.webcitation.org/5rqiBQWJl last accessed on November 18, 2011

Doddy, J., The Irish banking sector, Deloitte, http://www.deloitte.com/assets/Dcom-Ireland/Local%20Assets/Documents/Real%20estate/IE_PS_John%20Doddy_Soc_Chartered_Surveyors_Presentation_0311.pdf last accessed on November 18, 2011

Farrell, S.., 2009, Anglo Iris Bank nationalized, The Independent, http://www.independent.co.uk/news/business/news/anglo-irish-bank-nationalised-1380495.html last accessed on November 18, 2011

Kuenkeel, P., Gerlach, S., Frieg, V., 2011, Working with stakeholder dialogues, BoD -- Books on Demand, ISBN 3839183022

Mitchell, K., 2009, Anglo Irish Bank hit by further controversy as fraud squad called in, Finance Markets, http://www.financemarkets.co.uk/2009/02/24/anglo-irish-bank-hit-by-further-controversy-as-fraud-squad-called-in / last accessed on November 18, 2011

Murugan, M.S., 2007, Management principles and practices, New Age International, ISBN 8122415067

Pride, W.M., Hughes, R.J., Kapoor, J.R., 2011, Business, 11th edition, Cengage Learning, ISBN

Schermerhorn, J.R., 2010, Management, 11th edition, John Wiley and Sons, ISBN 0470530510

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