Business Management on Mediolanum Bank

This report analyzes the strategic issues faced by Mediolanum Bank and the impact of macro-environmental factors on the banking industry. It also recommends strategies to remove the issues faced by the bank.

Running head: BUSINESS MANGEMENT ON MEDIOLANUM BANK
BUSINESS MANGEMENT ON MEDIOLANUM BANK
Name of the Student
Name of the University
Author Note

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Executive Summary
The purpose of the report is to find out the current and future
attractiveness of the banking industry from the perspective of the Mediolanum Bank which as
the case indicates has an ambitious growth in the future. The purpose of the repot was to find
out the recent impacts of the macro environmental factors on the Mediolanum Bank, and will
there be any future attractiveness of the industry that is the Mediolanum Bank of
Organizations. It also recommended various strategies which can be implemented so as to
remove the strategic issues which are faced by the bank.

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Introduction
Mediolanum Bank which is the leading as well as one of the first bank in Italy to take
its banking services online, it is also known for its insurance and asset management and
conglomerate which is the parent company of the Mediolanum Group. The purpose of the
report will be finding out the strategic issues which are faced by the bank, as well as the
effect of the macro – environmental factors which are used in shaping the current banking
industry of Mediolanum Bank, as well as how the impact of the current macro environmental
factors upon the future attractiveness of the organization. It will also be explained what were
the prior discussions before attempting the task as well as the strengths of the bank used to
develop the report. Using the advanced strategy themes which will be discussed it will also
be analyzed and advised on the strategic development plans of the Mediolanum Bank.
Task 1
Strategic Issues which are faced by the Mediolanum Bank
The Strategic issues which were faced by the bank are that due to the absence of the
traditional bank offices the Mediolanum Bank had to face some important fixed costs as well
as share the advantages of its strategies with the clients and by competitive pricing of the
financial services for free of cost. There was also a mass diffusion of the internet in the late
2000’s which was one of the major challenges faced by the bank. The bank was previously
on of the best bank of Italy which had started its business with the customers without proper
bank offices and excluding the queues (Zattoni and Cuomo2016). The customers and clients
were served by the bank through the generation of telephones, or some were served with their
dedicated television channel lines or connectivity whereas others were also served with the
use of proper and speed internet connection with the visits of the global financial consultants,
but they were more complex value adding operations, which would thus allow the clients or

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the customers of the bank to get an access to the financial assistance or services according to
his or her needs as well as required time and also benefiting their personal preferences. The
mass diffusion of the internet in the year 2000 allowed the Mediolanum Bank to reinforce the
strategies it had set before by offering the services to its clients which would require all the
human resource interactions as well as a routine banking operation which will be via
telephone and the best of the online banking services which will be via high speed internet
and convenience (Baccini and Marroni 2016)
Effect of macro-environmental factors in shaping the current banking industry
The PESTEL Analysis on the Mediolanum Bank will point out the major impacts of
the bank due to the impact of the macro environment:
PESTEL Analysis on Mediolarnum Bank
1. Political Factors Political factors which are related to the
level of intervention and the nature of the
local and national government policies
which plays a very vital role in the
objectives as well as the nature of the bank.
Shareholders such as the non-government
organizations as well as the pressure groups
which plays a very vital role in making the
policies for the banking industry. The bank
should immediately close the collaborations
with all these organizations which will help
it to contribute more to the financial
marketer’s the bank can have an access to
the financial marketers in the community.

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Due to the inefficiency of the availability of
the liquidity in the market. Political factors
which are existing in the market where the
Mediolanum Bank which also operate in
many countries where various policies
based on the country and the regional banks
has to be made on the performance of the
country and their specific requirements.
2. Economic Factors The recent trends in the Italian
market shows recent rise and populisms
across the whole world, which may also
lead to a bigger instability in the Italian
Market. As per the economic performance
of Italy it is seen that the near future will
almost be stable as per the government
expenditure, static demand just because of
the disposable income as well as the
increase in the investment into various new
industries. Because of the easy liquidity the
bank receives inflation in the market
economy. The downward pressure which is
on the consumer also affects society even if
the disposable income remaining stable. The
growing inequality also impacts negatively
in the sentiment of the consumer which also

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impacts the consumer behavior of spending
money. The increase in the liberalization of
the trade policy in Italy also helps
Mediolanum Bank to invest further into the
religions which re so far off the limits to the
other firms in the same industry.
3. Social Factors The gender roles which are evolved in Italy
is also playing a vital role in Mediolanum
Bank where the bank is able to test concepts
which cater the needs and support the
gender roles in Italian society. Outlets of
various media also impacts the bank in
playing in influencing the public where the
social media and traditional media are
growing in Italy. Mediolanum Bank is
leveraging both the factors to do a better
marketing and positioning it products in the
market.
4. Technological Factors Technological impact like the advancement
of the speed of internet and empowering
supply the supply chain factors are also
impacting the factors of the bank. The bank
keeps an eye on the enhancement as well as
the development of the speed and access of

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internet to the users. Technology has also
shortened the product life cycle, but the
bank has enabled supplier to quickly
develop new products. Innovation in the
technology is disrupting the chain because it
provides greater access to the information
which is not only to the supply chain
partners but to the wider players in
Financial industry of Mediolanum Bank.
5. Environmental Factors The increase in the liberalization of
the trade policy also helps the bank in
investing further to the regions which are
away from the firm. The core infrastructure
in Italy which is available Environmental
factors are also altering the priority with the
innovations of the products. Over the last
few years sustainability as well as the
environmental factors are also increasingly
becoming very critical for the bank to
follow its business. The government and the
pressure groups which were stated before
are also asking he organization to stick to
the environmental standards. Waste
management which is especially for those

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units which are close to the urban cities has
taken a very increasing importance for the
Mediolanum Bank where the Italian
government has provided strict roles and
norms to the management of wastes in
urban areas. Greater awareness to the
customers of the bank has also put an
impact on the environmental factors in the
strategies of the Mediolanum Bank.
6. Legal Factors The customers of the bank is not expecting
the bank to stick to the legal standards put
by the government but it has come with
some strict rules to value the propositions.
Business laws also impacts the growth of
the bank where the norms which are led by
the government, these norms has to be
consistent with the international institutes
like the World Trade Organization and The
European Union. The business laws which
are procedure in Italy are same with the
institutions like the World Trading
Organization, European Union’s etc. Over
the past few centuries the protection of data
has emerged a very critical part of not only
the private issues but also the property right.

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Mediolarnum Bank has various other
mechanism s set so as to protect against data
breaches
Fig 1. PESTEL Analysis of Mediolanum Bank.

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Critical analysis and advice on the strategy deployment plans on Mediolanum Bank
The measures which were taken by the Mediolanum Bank in the year 2014 which was
regarding the Quality as well Corporate Social Responsibilities is bringing few encouraging
result. Bank had continued its strategies which were aimed at changing the customer’s
perception on the Mediolanum Bank which is striving very hard to promote the values to the
customers as well as the shareholders as well as to retain their loyalty to the clients (Nicoletti,
2014).
Internal Dealings.
The Board of Directors has various powers to solve the extraordinary as well as the
ordinary management of the company excepting the laws which are related to the general
meeting so that the company can achieve its goals and objectives. Board of The Directors of
the Mediolanum Bank had approved the regulations for trading which was set by insiders of
the corporate as well as the close members is that The Internal Dealing Code of Conduct
which can be easily accessed in the company website. Besides setting the regulatory
requirements (Serio 2018). The code also regulates the trading which is the issuing of the
company shares as well as the financial instruments which are carried out by the corporate
insiders. The shares of the company are directly or transacted through the intermediate or the
trusts or as well as the close associates or the mentioned insiders in the bank (VOJINOVIC
2018).Besides adding the corporate insiders the company has also said the code will be also
applicable to the officers who prepares the account for the company . If any trading is failed
then it should be reported to the company website as soon as possible so as to take necessary
steps and actions. Mediolanum Bank in the year 2010 took various measures to prompt as
well as implement the resolutions which was regulated on the transactions with the related

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parties who were the shareholders of the company. The resolution was therefore sent to all
the other firms in the Mediolanum Finance Conglomerate. The procedures which were as
well published in the company website are under the sections of invest relations- Corporate
Governance as well as Corporate Governance Documents (Gropp and Radev 2017).
Strategies and work management of the Board of Directors are as follows:
 It provides guidance as well as supervision along with various laws as well as
corporate by-law. It also sets the corporate strategies and goals so as to ensure the
system for controlling it (Morabito 2014).
 It approves business strategies as well as other plans for financial share issuing
companies. It issues the company’s governance system as well as Mediolanum Bank’s
Organization.
 Assessing the sustainability of the organization and also managing the accounting
system is one of the strategic subsidiaries arranged by the Chief Executive officers
(Morabito 2017).
Board of the Statutory Auditor
The board of the statutory auditors verifies compliances with the law and by the law.
It will also verify the sustainability for the preferred organization structures as well as the
accounting management which the company adopts. In the year 2014 few people from the
board of the members were appointed to stay in the office to check the approval for the
financial statement (Musile and Suard 2018).
The Audit and the Risk Committee

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Board Audit as well as the Committee for risk was set up so as to assist the Board of
Directors which they can define and control the internal system and risk management. This
also ensures identification and management as well as it controls the high risk outcomes
which are set to issuers. It can also check whether the risks can be compatible along with a
proper and sound management of their business strategies and targets. It also helps the Board
of Directors to check the sustainability as well as the risks taken and internal control. It also
takes all other necessary steps so as to implement the stocks option plan which also includes
identifying the beneficiaries and assigning the numbers of the related exercises. (Ribera
2018)
It also serves to express its opinion, to the director which regards the sze as well as the
composition. It is recommended only if it is proper, inclusion of exact figure is considered to
be very beneficial which is sending advices on the problems which are faced by the company
(Braghin 2015).

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