Peoples Bank: organizational structure and operations

People's Banks

Critically analyze the strategies adopted by Dinesh to retain the leading position.

The hard work and determination of Dinesh, who joined the branch as branch head in June 1998 helped to create a successful business. He went in with one focus, which was to grow the banks probability margin and make it successful as he could. Taking note of new technological advances and innovations at an early start helped to establish ideas of services that would help to establish their place at the top of the sector. The Multi-programmed strategy set into place by Dinesh helped to save the bank from an otherwise different outcome, into a profitable success.

A very important strategy that every business must have on point is their customer service. Without the presences and happiness of customers your business will slowly fail and soon a business will not exist. Dinesh saw this important aspect and made it a strategy to improve, if he wanted the bank to succeed. He decided to established high service standards and took the complaints from the customers seriously. The idea was to send the customer away happy, because the word of mouth is a very powerful tool that can make or break a business's reputation. Customer service can provide a business with a foundation for growth. Bonuses, promotions and price reductions were offered to new and old customers in order to make them happy about where they chose to bank. The strategy of customer service was also important in saving current a future accounts with the banks. They wanted to do this by reducing the cost of resources for the customers. If customers feel that they are not getting more bang for their buck in the form of lower interest rates and higher returns, many will feel they are wasting their time with one bank and move to the next. Hence the important of customer service and making the customer feel that they are top priority and their interests comes first.

Another strategy that contributed to the success was the change in focus from the corporate to the retail segment. With this change Dinesh was able to give customers more options for their banking needs, as well as build the banks profitability margin. "In return it resulted in the increase of the retail share segment from 15% to 50% and corresponding reduction in the corporate segment from 85% to 15%." Dinesh took note of the technological advances being made around him and decided to take advantage at an early start. As the world evolves and new innovations are put into place, businesses need to stay on top of everything in order to beat their competition. Consumers will go where they feel a bank is taking not of new strategies to improve their business and where growth potential is evident. This all ties into the importance of customer service among businesses and not staying in formed could bring the business down. For a business introducing new and exciting ideas for customers whether it be online banking, mobile banking or deposit methods being the first will always put you at the head of the game.

Dinesh made sure that in order to have a prosperous business; the performance expectations of the management had to be high. The quality of service from the head management had to be in line with the mission and focus of the bank. In order for this to be done he reviewed the positions of the management team and condensed the four management positions, which helped to reduce the bank's cost. By reducing the management positions, he was an able to narrow down the field to a smaller amount of people who could be held accountable for their actions and the actions of the employees under their supervision. Goals could be put into place and relationships and the care of the customers were the top priority.

2. What additional steps Dinesh could have taken to improve the profitability?