Mendiola, Julie Ann Banco Rio’s Case Analysis 10-10-2012
Strategic Financial Management
I. Point of View
The financial analyst is a decision maker or person who is in the position to make the final recommendations as mentioned in the case. He will be responsible with the interactions with other executives, developing information flow system, research and development and investment decisions referring to capital budgeting and financing sources, forms and methods. He will communicate, judge and monitor the results of business decisions knowing how to make strategic investment decisions as well as operational decisions.
II. Time Content
Between the years 2001-2002, it is ...view middle of the document...
It is a leader in international trade, payment medium, transactional services, and cash management, as well as one of the major players in the exchange of stock, public securities and currency. Its powerful Home banking division provides services to 200,000 customers and has ranked, for four consecutive years, as the “Best Internet Bank in Argentina” for its internet services in retail banking.
Weakness. The firm competes in a highly dynamic market
Opportunity. The bank is constantly launch new products and find innovative ways to stay close to its customers. The Bank’s extensive, nationwide branch network and its long-standing client relationships have awarded Banco Rio a solid and outstanding brand name in consumer and commercial banking. The bank are currently considering opening new branch offices in Argentina ofr they are growing and gaining market share in all segments.
Threat. Major competitors are replicating Banco Rio’s sound marketing strategies, thus driving competitiveness in the local market.
These are the factors which are not clear or not specifically stated in the case but need to be clarified. And it is the reasons why in the years 2001-2002 crisis happened to further understand why all the situations occurred at that time. All the events that had happened are the challenges faced by Banco Rio to be a competitive bank among others. It is the way why they don’t lose their hopes to survive and to recover in all the situations.
VII. Alternative Course of Action (ACA)
These are the possible solutions to the problem identified.
Management and Human Resources
* Undertake the necessary actions to develop and motivate every one of its employees and their families.
* Human resources training
* Focus on the strategy that will make the company closer to its customers
* Strategize zeroes in on financial-service quality
* Develop bank’s new contact channels
Corporate Social Responsibility
* Develop the bank’s community service
* External debt restructuring and capitalization
* Expand its branch coverage and to increase its front-end personnel devoted to sales and customer care by 20 percent.
* Should keen on SME development
Banco Rio proved that they can be an excellent bank compared to others. The bank can manage change affecting in the economy, financial aspects, marketing and others. They can understand well the internal resistance to change. The vision on relationships between processes, technology and organization are being planned according to what the company want to achieve in the future. Having an excellent strategy would make them compete to different kinds of banks in the place.
A continuous strategic planning is very much important to our world today where stiff competitions are always happening to challenge and to make some hurdle to one’s success.
IX. Plan of Action