Analyzing Mediolanum Bank's Strategy Execution: A Bocconi Case

This case study examines the advanced strategies employed by Mediolanum Bank to enhance its market position and financial performance. The analysis highlights the bank's growth drivers, including customer base development and innovative strategies such as global financial consultants and new product launches. The study also explores the 5D strategies (Duration, Geographical, Stock, Growth Potential, and Risk Diversification) used for asset management. The bank's transition from global financial consultants to family bankers and the introduction of online account opening and financial instruments like "Freedom" are discussed. The case concludes that continuous innovation and customer retention strategies are crucial for the bank's future success in the competitive Italian banking sector.

Running head: Advanced strategy
Advanced strategy: Mediolanum Bank
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Advanced strategy
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Conclusion..................................................................................................................................4
Reference list..............................................................................................................................5
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Advanced strategy
Introduction
In the modern world of business, the development of an advanced level of strategies
will be really helpful for the development of the business in the form of better current and
future perspectives of the company in the industry they are belonging. The study is important
in the sense that it will highlight the developmental strategies that Mediolanum Bank will be
taking in order to improve their position in the financial environment of the United Kingdom.
Through the development of advanced level of the policies and strategies that will help in the
development of business. The main aims and objectives of the company will be to identify
the loopholes in the current strategies that will help the company in improving and
implementing future strategies.
Discussion
The current growth of the Mediolanum Bank has triggered due to three main reasons.
The main reasons that were claimed to be the driving factors includes the development of
customer base and the incorporation of better strategies. The bank is growing its business and
are looking very promising even in future. Prior to the heavy investment of retail banking in
the Italian financial institutes, the Mediolanum Bank has incorporated three important
strategies in the form of global financial consultants, no of customers and new products that
are launched quite a number of times. Through the incorporation of global financial
consultants, the bank did not felt the need to develop any kind of physical bank offices. Due
to the absence of any physical offices, the company is sacrificing any kind of fixed costs. On
the other hand, the companies has been aimed in distributing the profits among the
shareholders in an effective and efficient way. Due to this innovative strategies the company
delivers financial services to its clients through a competitive price for the financial services.
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Advanced strategy
However from the 5D strategies that the company has been adopting to maintain the assets
are effective in the sense that Mediolanum Bank will be able to identify the development and
allocation of the strategies that will help in the development of position for the company in
the industry. Through incorporation of Duration Diversification, Geographical
Diversification, Stock Diversification, Growth Potential and Risk Diversification, Financial
Instruments Diversification it is possible for the company to indulge deeply the asset
management techniques that are being used to increase the efficiency of the resources.
Through the development of duration diversity, the Mediolanum Bank has been developing
the resource distribution through the minimisation of development of better services to the
customers by minimising the time taken by the financial experts. Geographical diversification
is mostly seen in the development of the geographical location that will help in minimising
the development of locational factors. Stock diversification will be a crucial factor that will
automatically indulge in the development of better business.
Mediolanum Bank has trusted more on the development of the business using word of
mouth from their customers. Prior to the invention of the internet in the year 2000, the
Mediolanum Bank Company delivered their business through direct services of global
financial consultants and they delivered any kind of financial services to the clients as per
their time and convention. Only they used the phones to solve any kind of advices if required
by the clients. However, the advent of internet in the year 2000, saw the development of the
business at a much high speed compared to the offline methods (Bankingitaly.com. 2019). In
2006, the Mediolanum Bank Company brought a structural changes in their business by
bringing in family bankers replacing global financial consultants. However, the banks 9 years
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Advanced strategy
performances showed that the company gained average growth of 3.6% of customer base
(Bankingitaly.com. 2019).
In modern concept of financial business, bringing continuous innovations is important
and during the period of 2000, the company brought innovation in the product design by
bringing the technology of online account opening. Introducing financial instruments like
“Freedom” which is a combination of current account and life insurances scheme for savings
exceeding 1500 Euro. This schemes was launched in 2009 which gained immense responses
from the customers. The idea of opening online deposit account gave the platform to the
company top fly as the company was able to provide loans to the customers even during
recession periods.
Conclusion
The following study showed the importance of advanced level of banking strategies
that the Mediolanum Bank Company has taken in order to increase their production ability.
Looking at the future perspectives of the business, it is important for most of the banks to
incorporate enough level of advanced strategies that will automatically increase the financial
position of the company in the industry and will be looking forward to develop the
development of new products that will not only attract many new customers and will able to
retain the existing customers. The study has shown how the development of the banking
sectors in Italy is growing at a first rate. In order to increase and improve the business it is
important to monitor the strategies that will increase the development of customer retention.
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Advanced strategy
Reference list
Bankingitaly.com. 2019. Banca Mediolanum. [online] Available at:
https://bankingitaly.com/mediolanum [Accessed 7 Mar. 2019].
Butzbach, O.K., 2016. The evolution of organizational diversity in banking: Savings banks’
consolidation and sector coordination in France and Italy, 1980–2012. Organization Studies,
37(4), pp.565-589.
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