Integrated Case Study Analysis for OCBC Bank

This report provides an analysis of the challenges faced by OCBC Bank, including strategic, functional, financial, and customer satisfaction challenges. The report proposes appropriate solutions to overcome these challenges, including the use of Porter's Five Forces model and the Balance Scorecard model. The report includes a literature review, analysis and findings, and proposed solutions.

Integrated
Case Study
Analysis

Executive Summary
A banking is an industry that accepts deposits from the public and creates demand deposit
while making loans. Lending activities can be directly performed by bank or capital market. This
is important to organization to identify the requirements of their customers and put efforts to
provide kind of services. There are many challenges such as strategic, functions, financial, and
completion faced by OCBC Bank where it became important to introduce the effective strategies
that could help to regulate the business. While operating customer is important in success and
failure as it buy products from company resulted sale incensement. The management should have
effective theories and models which can be used to overcome the challenges and develop
business performance.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Statement of problem.............................................................................................................1
Aims and Objectives...............................................................................................................1
Case Brief: Description of the solution............................................................................................2
Problem Statement...........................................................................................................................2
Statement of the Problem.......................................................................................................2
Plan of Analysis......................................................................................................................3
Literature Review...................................................................................................................3
Analysis and findings.......................................................................................................................5
Proposed Solutions...........................................................................................................................8
Alternative solution and best fit solution................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Statement of problem
OCBC bank is one of the most popular and successful banking institutions in east Asia
with its branches spreading to Singapore, Malaysia, Greater china and Indonesia. This integrated
case study analysis report looks ate the current performance of OCBC Bank in the banking
industry of Singapore and provides solutions for improving its output in the market by through
effective solutions (Chen, and et.al., 2020). The banking industry is dynamic and changing which
requires businesses to focus on updating their business strategy and functional departments to
maintain competitiveness with rival firms. It has been identified through the case study that the
main problem affecting the respective company is associated with consumer satisfaction and
consumer loyalty.
Aims and Objectives
Aim: “To analyse strategic and functional challenges faced by OCBC Bank along with
appropriate solutions for overcoming challenges”
Objectives:
 To determine the strategic and functional challenges impacting OCB Bank
 To evaluate the challenges encountered by OCBC Bank through appropriate theirs,
formworks and models
 To investigate appropriate solutions for overcoming barriers encountered by OCBC
Bank.
The present report provides case brief covering the description of the company and its
problem. Subsequently a statement of problem and plan of analysis is also given in this report
identifying the problems in detail and theoretical tools applied for determining solution for each
problem. Literature review on the theoretical tools used for finding suitable solutions is also
included here (Tan and Taeihagh, 2021). Completing literature review is beneficial because it
helps develop familiarity it the concepts, frameworks and models used for analysing problems.
In the following section assessment of the current position of the company is provided using
theoretical tools, model, concepts and frameworks. The final section of this report includes
various alternative solutions for the problems and identifies the best fit solutions for OCBC
Bank. Recommendation for improvement of OCBC Bank are also provided here.
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Case Brief: Description of the solution
Overview of the company: OCBC Bank was created on 31st of October 1932 after merger of
three Banks. It is multinational Singapore based Banking instruction which is leading member of
the East Asian Banking industry. The OCBC Bank has number of subsidiaries which includes
OCBC securities, Great Eastern Holdings, Bank OCBC NISP, OCBC Wing Hang Bank and
many others. The aim of OCBC Banks is to provide consumers, shareholders, and communities
associated with the company long-term value by achieving sustainable growth. In addition to this
OCBC Bank is dedicated towards maintaining highest ethical standards in the market and
making decisions on the foundation of integrity and fair dealing. Taking responsibility of actions
and supporting creation of reliable banking institution is one of the driving values which fuel
OCBC in achieving best banking practices and delivering bets results to its stakeholders.
Description of company problems: Competition and intense rivalry in the banking sector is
common across different international market. Same situation can be seen in the Singaporean
Banking market as many regional as well as global banking institutions are present in the market
resulting in oversaturation in the market. The banking sector of Singapore is oversaturated
because it is considered International finance centre of Asia after Honk Kong and Tokyo. As of
now there are as many as 117 foreign banking institutions in the country and 6 regional banks.
This is the main problem affecting OCBC Banks as the company is not able to perform
effectively and maintain competitive position. In addition to this satisfying consumers in the
Singapore market is difficult for OCBC Bank and it is raked below par in terms of consumer
satisfaction and consumer loyalty. Finally, the future growth, market share and profitability of
OCBC is also in danger because of high competition and low consumer satisfaction.
Problem Statement
Statement of the Problem
 Strategic issue: High intensity of competition creation environment of market saturation
is the main factor which affects OCBC Bank’s business strategy. It is because of high
competition that the respective bank is unable to deliver long-term value to its consumer
shareholders and consumers. One of the primary competitors of OCBC Bank are regional
Banks such as UOB and DBS along with international banking intuitions such as
American Express. In order to deliver ion its values to consumers and shareholders,
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OCBC Bank needs to create a more competitive strategy for the firm. It is important for
the organization to understand the issues and provide right suggestions that can help to
attain higher performance (Anand and Mantrala, 2019).
 Consumer satisfaction challenge: It is understood from analysis of OCBC Bank that
consumers who have taken the credit card facilities were not satisfied that created the
challenge to regulate their business. It has seen that Singapore is a flourishing financial
centre where number of banking services are provided to their customers for the purpose
of making good to customers and support their business. But OSBC bank is providing
low level of financial services that directly affects business. In order to improve customer
satisfaction there is need to have proper planning and strategies which can be used to
influence number of people and increases sales.
 Financial challenge: It is related to finance that means being unable to pay debts over
the short and long term debts. This become a source of stress until all debts are paid. It is
understood from analysis of OSBC Bank that financial challenges such as lack of
financial sources, increasing debts, and less number of customers faced by organization
that directly affects business negatively (Momaya, 2019) .
Plan of Analysis
Functional
area of study
The problem faced by OCBC The theoretical tool
which will be applied
Strategy
management
High intensity of competition is the major strategic
issues that faced by company.
Porter’s five forces
model
Financial
Management
Lack of financial resources, increasing dents and less
number of customers.
Balance score card
Consumer
relationship
management
Lower customer satisfaction, or lack of customer
loyalty that created the problems for OBSC Bank.
Value chain analysis
Literature Review
To determine the strategic and functional challenges impacting OCB Bank.
As per perspectives of LakshmiKeerthi (2019), The term “Strategic challenge” refers to
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those pressures that exert a decisive influence on an organization’s future success. Strategic
refers to planning and execution which requires to understand and measure the organizational
performance. This is important to each industry to understand what is happening around and how
each function could be perform. Banking industry is one of the sector that relies its employees on
its quality of human capital. The facing function and strategic challenge in the form of
digitalization, and the performance of employees are really challenged. It has seen that customers
are important as they identify their needs and put efforts to fill by selecting the best organization
to purchase. The management and employer are responsible to manage and control business
strategies effectively. The meaning of functional challenge is issues which occurs while
operation and offering day to day products that directly affect the business organization and
reduce the productivity. To have good knowledge and skills regarding specific products or
services could be opportunity for business organization to regulate their business and manage the
functions. A banking institution is providing number of financial services and facilities to their
customers after identifying their needs and wants that support to operate the business regularly
and develop productivity. To overcome the strategic and functional challenge value chain
analysis should be use by banking industry as it can help to evaluate each of the activities in
company’s value chain to understand where opportunities for improvement is introduced. The
value chain model is classified into primary and supportive activities. The execution of primary
activities is inbound logistics, operation, outbound logistics, marketing and sales, after sale
services that is followed by business industry to operate their business. The supportive activities
are more efficient that used to attain competitive advantages such as procurement, technological
development, human resource management, and infrastructure.
To evaluate the challenges encountered by OCBC Bank through appropriate theirs, formworks
and models
As per view point of Koh (2019), Banking is the financial institution that is designed for the
purpose of fill customer’s requirement and provide them financial services. This is important to
organization understand what type of service desires by customers then offer kind of products as
well services in order to operate their business. Different types of challenges such as finance and
customer relationship faced by business organization that directly affect the business
organization and performance. Strategic challenges such as intense competition is faced by
company due to having many competitors in the market that direct impacts on business
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performance. The functional challenges such as lack of finance, increasing debts and insufficient
balance that directly affect the business productivity negatively. The another challenge is lack of
customer loyalty and dissatisfaction due to which they are not able to recommend any other
person. This has directly affected the organizational productivity and performance. To overcome
the challenge of finance there is need to follow Balance scorecard model that is most effective
model used for the purpose of comparing with other company and bring changes effectively that
supports to develop the organizational performance and productivity effectively.
To investigate appropriate solutions for overcoming barriers encountered by OCBC Bank.
According to Knaak (2019), Number of challenges faced by banking industry in Singapore
due to which productivity and profitability has been affected negatively. It became most
important to organization to identify issues and provide optimum solution to resolve the
problems. OCBC bank is the largest financial institution providing credit card facilities to their
customers that direct affect their business. The management of each business organization should
have proper planning and strategies that can help to manage and arrange all business activities.
The managers require to analysis the existing strategy then formulates new one that can help to
regulate their business continuously. By using appropriate model and strategies of competition
and finance company can operate all business functions and activities effectively. Make right
decision is another effective strategy could be used by business organization for the purpose of
running business.
Analysis and findings
This area of report is used to explain the application of appropriate model and theories
which can help to solve the business issues and develop organizational productivity. This is
important to each business organization to understand what is happening around and their
customers are influenced to make buying decisions. To solve the Strategic issues management of
OCBC bank are using porter’s five force model that is described below:
Competitive rivalry – This states intense competitors in market so that each function could
be perform effectively. In relation of OCBC bank, main competitors are DBS, HSBC, and UOB
that directly affect the business. To overcome this issue chosen company needs to provide better
quality of credit card services along with innovation that can help to develop business effectively
(Nicoletti, 2021).
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Bargaining power of buyers – This shows how easy customers could bargain the prices of
products. OCBC Bank is the financial institution where bargaining power of buyers is low as it
provides credit card facilities at fixed prices where it charges high that reduces number of
customers. To solve this issue, management needs to bring innovation and reduces prices that
can help to operate the business effectively.
Bargaining power of suppliers – This shows how easily suppliers could bargain the prices.
In context to OCBC Bank, bargaining power of suppliers is moderate that can help organization
to operate their business properly by managing all functions and activities.
Threat of substitution – To provide the substitution of products and services in place of
original is threat of substitution. In relation to OCBC Bank, there is high threat of substitution
that could create the challenge. To solve this issue, company should focus on innovation that can
help to manage the all business functions and activities (Wai, 2019).
Threat of new entry – In relation to OCBC Bank there is moderate threat of new entrance
because to open a new financial institution in marketplace there is requirement of huge amount
of money and investors that can help to operate the business effectively.
From the application of porter’s five force model, it can be interpreted that OCBC Bank
could influence the number of customers in changing environment and provide number of
services that can help to regulate the business effectively. The management understand the issues
of competitors and use this model of manage all risk in order to develop business performance.
The another analysis stated that OCBC Bank faced the financial issues that needs to be
resolve by applying the effective model and tool that can help to influence the number of people
and manage all functions. Manager is using Balance scorecard model to solve the problems.
Balance Scorecard model – A Balance Scorecard is a strategy performance management
tool which is used by managers to keep track execution of business activities and managing
finance. OCBC Bank applied this model to perform their credit card service activities by the staff
in their control and monitor the consequences arises from their actions. The managers could
understand how funds could be manage and allocated into specific business activities so that
each function could perform well. Without arranging of funds and allocation company faced the
challenges where it became important to make the use of balance scorecard as it is helpful in
tracking activities and bring changes in existing performance that can help to develop the
business productivity as well as profit. This is important to organization to understand what type
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of services are demanding by customers in financial institution and providing services that can
help to develop organizational productivity (Wang, Kim and Jeong, 2020).
Value chain analysis is another model applied by OCBC Bank to solve issues in relation
to customer relationship such as lack of customer loyalty and dissatisfaction. In this, primary and
secondary activities are explained below:
Primary Activities
Operation – The customer service officers conduct anti money laundering searches to
check whether new customers are eligible to open an account with the bank. The operational
activities which is perform by OCBC Bank set by Monetary Authority of Singapore to make sure
transparency of daily transaction that only helps to make profits in a year.
Marketing and sales – There is intense competition in banking industry of Singapore.
OCBC Bank leverages on social media to connect with customers directly as this is a way to
promote the products and services. This can help to develop the organizational performance and
productivity effectively (Khadka, 2020).
Service – This is a key factor for bank to strive in the environment. By providing good
customer service, OCBC Bank can have competitive advantages against other competitors. The
chosen bank has 20 branches opened on Sunday for providing financial services and convenience
that can help to develop business productivity.
Supportive Activities
Firm Infrastructure – The infrastructure of OCBC Bank is wider as it operated in
number of cities and managing the all functions effectively. The company understand the
requirement of their customers and provide them good quality of services which can help to
develop the organizational productivity.
Human resource management – HRM is the main function which is used to identify the
vacancy and recruit skilled people that can help to operate the business effectively. The human
resource manager of OCBC perform their all functions by recruiting the skilled people which
support to accept challenges and develop organizational productivity.
Procurement – This means how raw material for the product are obtained. OCBC Bank
obtaining procurement activities by offering credit card services and observing other institution
that can help to regulate business (Hamzah, Othman and Hassan, 2020).
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Technology – Digital technology and innovation in banking services are provided by OCBC
Bank to their customers that helped to manage the business effectively and attain competitive
advantages.
Proposed Solutions
Alternative solution and best fit solution
Implementation of monetary policy – OCBC Bank needs to follow the monetary policy
regulated by Monetary Authority in order to arrange the finance and funds.
Running customer loyalty programme – This could be explained as effective solution in
which OCBC Bank needs to organise the loyalty programme by offering more services as well as
benefits that can help to overcome the challenge of customer dissatisfaction (Indriasari, Gaol and
Matsuo, 2019).
Brining new innovation and technology – To bring innovation and new technology is a
solution that could be applied by OCBC Bank to manage all functions and introducing new
financial services as it supports to bring change and attaining higher performance.
Best Fit solution
From the above Running customer loyalty programme is considered as best fit solution
as it is marketing approach that recognises and rewards customers who purchase or engage with
a brand for the purpose of develop the organizational functions. This can help to develop the
organizational functions and activities in financial industry. Coalition Loyalty Programme should
run by OCBC Bank for Singaporean consumers will be able to exchange, consolidate and
redeem loyalty rewards (Zhu and Yang, 2021).
Recommendations
It is recommended to OCBC Bank to focus on their products and services in finance
industry as it could influence their customers and support to recommend others. The
management of business organization should have proper planning and strategies to understand
competition level and manage the services that can help to attain the business productivity
effectively.
By using porter’s five force model OCBC bank can evaluate the rivals and bring good
quality of service than others in order to managing their business functions and increasing
customers.
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To maintain good customer relationships and improving loyalty company should run
Coalition Loyalty Programme Consumers, will be able to utilise this first-of-its kind cross-
industry loyalty platform to accumulate, convert and utilise their rewards points and air miles
across the different partners and merchants with ease and speed, via an online tracking
dashboard.
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REFERENCES
Books and Journals
LakshmiKeerthi, P., 2019. Usage of HR Analytics and Challenges Encountered by Singapore
Based Companies (Doctoral dissertation, SRI VENKATESWARA UNIVERSITY
TIRUPATI).
Nicoletti, B., 2021. Processes in Banking 5.0. In Banking 5.0 (pp. 303-325). Palgrave Macmillan,
Cham.
Wang, Y., Kim, D. K. and Jeong, D., 2020. A survey of the application of blockchain in multiple
fields of financial services. Journal of Information Processing Systems. 16(4). pp.935-
958.
Khadka, R., 2020. The impact of blockchain technology in banking: How can blockchain
revolutionize the banking industry?.
Wai, T. T. S., 2019. CHALLENGES OF TREASURY RISK MANAGEMENT IN SELECTED
COMMERCIAL BANKS (Doctoral dissertation, Yangon University of Economics).
Hamzah, M. I., Othman, A. K. and Hassan, F., 2020. Mediating effects of individual market
orientation on the link between learning orientation and job performance. Journal of
Business & Industrial Marketing.
Koh, E. H., 2019. Risk management competency development in banks: An integrated approach.
Springer.
Knaak, M., 2019. Innovating the Customer Journey: Implications for Managing the Customer
Experience, Customer-Company Interactions, and Trust (Doctoral dissertation,
Universität St. Gallen).
Indriasari, E., Gaol, F. L. and Matsuo, T., 2019, July. Digital banking transformation:
Application of artificial intelligence and big data analytics for leveraging customer
experience in the Indonesia banking sector. In 2019 8th International Congress on
Advanced Applied Informatics (IIAI-AAI) (pp. 863-868). IEEE.
Zhu, X. and Yang, Y., 2021. Big data analytics for improving financial performance and
sustainability. Journal of Systems Science and Information, 9(2), pp.175-191.
Momaya, K. S., 2019. The past and the future of competitiveness research: A review in an
emerging context of innovation and EMNEs. International Journal of Global Business
and Competitiveness, 14(1), pp.1-10.
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Anand, D. and Mantrala, M., 2019. Responding to disruptive business model innovations: the
case of traditional banks facing fintech entrants. Journal of Banking and Financial
Technology, 3(1), pp.19-31.
Tan, S. Y. and Taeihagh, A., 2021. Governing the adoption of robotics and autonomous systems
in long-term care in Singapore. Policy and society, 40(2), pp.211-231.
Chen, S., and et.al., 2020, October. An empirical assessment of security risks of global android
banking apps. In 2020 IEEE/ACM 42nd International Conference on Software
Engineering (ICSE) (pp. 1310-1322). IEEE.
LakshmiKeerthi (2019) Koh (2019), Knaak (2019), Nicoletti, B., 2021 Wang, Y., Kim, D. K.
and Jeong, D., 2020 Khadka, R., 2020 Wai, T. T. S., 2019. Hamzah, M. I., Othman, A. K. and
Hassan, F., 2020 Indriasari, E., Gaol, F. L. and Matsuo, T., 2019 Zhu, X. and Yang, Y., 2021.
Momaya, K. S., 2019. Anand, D. and Mantrala, M., 2019 Tan, S. Y. and Taeihagh, A., 2021
Chen, S., and et.al., 2020,
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