OCBC Bank Credit Card Business: A Case Study Analysis

This report analyzes OCBC Bank's credit card business, focusing on customer satisfaction in Singapore. It identifies problems related to HRM and marketing, and proposes solutions to improve customer satisfaction and retention. The report includes a SWOT analysis, Porter's five forces analysis, and relevant models and theories. The findings reveal low employee retention, workplace diversity issues, lack of training programs, difficulty in recruiting talent, and challenges in retaining customers. The report recommends strategies to address these issues and improve the bank's performance and productivity.

Case Study Analysis

EXECUTIVE SUMMARY
OCBC bank is a multinational financial service providing bank which is headquartered in
Singapore. It is a public limited company which provides services such as corporate banking,
investment banking, retail banking, wealth management, asset management, etc. It is the second
largest bank in South east Asia and is also one of the highest ranking bank in world. The purpose
of bank is to provide innovative financial services to its customers which will enable them to
meet their needs. The focus of company is to create long term value for its shareholders,
customers, people and community. The case study provides details of OCBC bank's credit card
business and gives a detailed analysis of its ranking in its credit card service. Focus of study is
regarding study of customer satisfaction in Singapore by aiming level of customer satisfaction in
OCBC bank credit card services. The report will focus on problems that are faced by bank which
includes HRM problems and marketing problems. The problems will be analysed using various
strategies and report will also include approaches and recommendations to resolve the identified
problems. Aim of report is to study customer satisfaction and the ways through which it can be
improved which may lead to customer retention.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
Case Brief.....................................................................................................................................5
Explaining the models, concepts and theories that are relevant to the case................................6
Analysis and finding....................................................................................................................9
Proposed solution to problems...................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The report is about the study of customer satisfaction in banking sector and focus of
study is on OCBC bank credit card business.
Statement of problem
 Problems related to human resource management in banking sector
 Problems related to marketing and its strategies
 Problems in retention of customers and customer satisfaction in credit card business
Research aim
The aim of research is to identify and analyse the areas which can improve customer
satisfaction and decrease percentage of customer turnover To assess problems related to human
resource management and marketing. A study of OCBC bank credit card business
Research objective
 To identify and analyse problems of human resource management of OCBC bank
 To evaluate problems related to marketing and its strategies
 To identify areas which are negatively impacting customer satisfaction and retention
 To recommend solutions to resolve the problems identified in OCBC bank
Research Question
 What are the problems faced by human resource management of OCBC bank?
 What are the problems identified regarding marketing strategies adapted?
 What are the factors or areas that is impacting customer satisfaction and retention?
Research report
The report is going to highlight different human resource management and marketing
problems faced by OCBC bank using various analysis tools. It also includes assessment of
internal factors of bank using SWOT analysis and Porter's five forces framework for
understanding competitive forces in banking sector (Lim and Parker, 2020). The report also
provides solutions for identified problems which will enable bank to improve its performance
and productivity. The solution will also enable bank to enhance customer satisfaction and retain
loyal customer. Research is based on improving customer satisfaction through identifying
problems by analysing internal and external factors. Report has also given limitation of research
and recommend solutions to overcome the limitations and provided action plan for addressing
limitations and scope for future research.

MAIN BODY
Case Brief
SWOT analysis
SWOT analysis of OCBC bank gives a detailed analysis of strengths, weaknesses,
opportunities and threats.
Strengths
 The wide distribution network of OCBC bank ensures easy accessibility of services to
numerous customers in timely manner. Company has adapted various sustainable programs.
Weaknesses
 Bank is required to invest in latest technology to accomplish the vision of bank.
 The global presence of OCBC is not up to mark (Benzaghta and et.al., 2021). The customer service of company is not good which leads to negative brand image.
Opportunities
 The expansion plan of bank to other countries. The development of technology and adaption of latest technology.
Threats
 Increase in level of global competition is a threat for bank to expand its business.
 The dynamic market environment
Porter's five forces
Threat of substitute: The threat for substitute in banking sector is very high as products and
services provided by banks are homogeneous which gives opportunities to customers to switch to
bank that provides beneficial products and services. OCBC bank is required to build strong
customer relationship, focus on marketing strategies to attract more customers.
Threat of new entrants: The threat of new entrants is low in banking industry as to enter banking
sectors it requires huge investment. The companies which is planning to operate in banking
industry is required to do lot of research and establishment of company in this industry requires
lot of paper work.
Industry rivalry: The level of competition in banking industry is very high and expansion of
digital market has given advantage to companies to build strong customer relationship and

expand their business (Werth and et.al., 2020). OCBC bank is required to continuously invest in
research and development to develop new strategies which can ensure customer retention.
Bargaining power of customers: The increase of bargaining power of customers has lead OCBC
to decrease its product and service price to ensure lower threat of substitutes.
Bargaining power of suppliers: The higher bargaining power of supplier has impacted the
potential of OCBC to earn higher profit as they extract higher price for products and services
offered by them.
Explaining the models, concepts and theories that are relevant to the case
◦ HRM problem No.1: Employee retention
▪ Hertz berg motivation hygiene theory: The banking industry must used this theory
as this helps the workplace to have job satisfaction and retain the employees by
motivating them with financial and non- financial factors. Further this theory used
to explain about the two separate aspects that helps the employees to get
satisfaction while working in the organization. The main purpose of this theory is
to know about the practical application and help the managers to have
improvement in their knowledge. This helps the employees of organization to get
proper motivation and engagement in their work.
◦ HRM problem No.2: Workplace diversity
▪ Hofstede’s cultural dimensions theory: This is the most affecting problem faced
by the cited company. By evaluating each dimensions of this model it helps the
company to manage equality in the workplace. This model further help the cited
company to have the better effect on the culture and value of the members which
used to maintain the equality in the company (Minkov and Kaasa, 2020). By this
it will reduce the problem of the company and help them to have cross-
communication in the organization. This model has basically five dimensions that
are power distance index, individualism and collectivism, UAI, masculinity
versus femininity, etc. By this banking company will help to know about the
differences between the countries and how it can be managed.
◦ HRM problem No.3: Training and compliances

▪ The HR Value chain: The above stated HRM problem can be managed by using
the HR value chain. This model will help the company to add something valuable
to the organizational goals. By proving better training and have improvements in
compliances this will help the company to overcome from such problem. Further
it will bring the better HR activities and contributes in the objectives of the
company. It also describes that the department used to have number of process
and actions that helps them to achieve better goals in the banking industry.
◦ Marketing Problem No.1: Recruiting talent
▪ The CAGE Framework: This is one of the important model which helps the
company to know about that how people in the new market will accept the
company's offer. As the cited company is working in banking as it used to launch
various offers in order to recruit the talent. So this will help them to reduce the
above stated marketing problem in their company. This will maintain the culture
and differences between the industries by adopting the better strategies to do
work.
◦ Marketing Problem No.2: Retaining customers
▪ The Marketing Mix communications: The above stated problem used to have
severe impact on the company. The cited bank must have the good marketing mix
communication with the public by having the proper advertisements, digital PR,
etc. in order to satisfy their marketing goals. This tool will make the company to
have the better communication with the customers or with their potential
customers (Dwivedi and McDonald, 2018). The cited organization must have the
websites that will be easier for the customers to communicate with the company
and retain them in the market.
◦ Marketing Problem No.3: Maintaining the sufficient budget
▪ The Expectancy Theory: This their used to suggest that increased in the effort will
put the task and will provide the resulted outcome. As the company is not having
the proper budget than it will have great impact on the desired goals. Expectancy
refers to the belief that if the company will raise their efforts than it will increase
their profit as well. By having the better choices for the customers it will help the
company to make the proper budget by earning the better profits in the market.

This theory basically used to put focus on the organization rewards that is directly
linked with the performance.
◦ Strategic Marketing Problem No.1: Hiring top talent
▪ SOSTAC Model: SOSTAC model is basically used in the marketing and planning
of the company. This model is based on the working that is agile digital marketers
that used to create between the objective, situation and control. SOSTAC stands
for situation, objective, strategy, tactics, actions and control (Grewatsch, Kennedy
and Bansal, 2021). As the company was facing problem in order to hire the best
talent so this model will help them to know about the situation and have the best
actions in order to stay tuned in the market. This will support the company to
come out from such problem related to strategic marketing.
◦ Strategic Marketing Problem No.2: Too much competition in the market.
▪ The Complexity Theory: The complexity theory used to suggest that hoe the
systems that is economy and global corporations will grow, adapt and survive in
the market. As the company was facing lots of competition in Singapore so it
makes them difficult to survive in the market. This theory will have the better
relationship with the customers and employees and reduces the complexity in
order to survive and adapt better changes in the market. By this there will be great
bonding and thus helps the company to retain better customers in the market.
◦ Strategic Marketing Problem No.3: No product or service differentiation
▪ Porter’s Generic Strategy: This strategy includes the four factors that are cost
leadership, differentiation strategy, cost focus strategy and differentiation focused
strategy. As the company was facing the strategic marketing problem as it as not
doing any service or product differentiation in the market. By using the
differentiation strategy it will help the company to provide better and
differentiated services to the customers (Rindova and Courtney, 2020). This will
also help the company to have better competition with the competitors and have
full product diversity by providing the better services. As the company was facing
lots of problems by not having diversity in their services that has affected the
profitability of the company in Singapore.

Analysis and finding
 HRM problem no.1: It has been found that the employee retention is very low in OCBC
bank as HRM is not in a practice to satisfy its employees by providing rewards and
benefits in accordance to their performance. This non satisfaction in employees and
increase in competition in banking industry are forcing employees to switch company.
The increase in employee turnover has negatively impacted performance and productivity
of company as it is not able to provide effective customer service (Bhutta and Zafar,
2019). HRM of company is required to look into the matter and find solution to decrease
employee turnover as increase in this has also increased cost.
 HRM problem no. 2: Workplace diversity, is the another problem which has been found
in OCBC bank. The company is operating in various countries and the employees hired
are of different culture and attitude. It is responsibility of HRM to analyse the behaviour
and attitude of every employee and implement strategies accordingly (Khan and et.al.,
2019). The implementation of strategies not according to employees culture and attitude
has indulged non satisfaction among employees and this has ultimately led to decrease in
productivity and performance of employees and company.
 HRM problem no. 3: Training and development programs are very essential in every
organization as it enables employees to develop their skills and learn new things. OCBC
is lacking training programs which has led to non development of skills of employees and
stopped overall development of employees. Employees of bank are not able to cope with
changing environment and adaption of latest technology. This has also led to non
satisfaction among customers as employees are not able to provide services effectively
and efficiently.
 Marketing problem no. 1: Recruiting talent, it is one of the biggest problem that is
faced by every organization which is operating in global market. The rise in competition
and expansion of global market has made it difficult for bank to hire skilled and talented
employees. The lack of skilled and talented employees has made it difficult for bank to
offer effective and efficient customer service and resolve their queries.
 Marketing problem no. 2: Retaining customers, to ensure growth and development of
bank in banking industry it is required to build loyal customer base and ensure retention
of loyal customers. The another problem of OCBC is that it is not able to retain its

customers as it is not able to provide effective and efficient customer service (Shah and
Asad, 2018). Products and services are homogenous and company is not engaged in
promotional activities to attract customers. Increase in employee turnover and non
conduction of training programs are also one of the reason for non retention of customers.
 Marketing problem no. 3: Maintaining sufficient budget, the marketing problem that is
found is OCBC is not able to maintain its budget. The lack of proper monitoring, poor
communication and lack of clear policy and procedure has led to improper maintenance
of budget. The bank is not able to maintain cost according to the set budget which has
resulted into low profit margin.
 Strategic marketing problem no. 1: The strategic marketing problem found is that
OCBC bank is not able to hire top talent from the market. Marketing department of bank
is required to have skilled and talented employees who can use effective marketing
strategies to attract customers and develop strong customer relationship. The high
competition has made it difficult to hire top talent in marketing department. Bank is
unable to gain competitive advantage by hiring new and top talent who can ensure
effective and efficient customer service which can increase customer satisfaction and
their retention. The bank is not able to increase its market share and increase its revenue
as it is not able to attract new customers.
 Strategic marketing problem no. 2: The increase in competition in banking industry
and dynamic environment has made it difficult for OCBC to implement strategies and
maintain competition in industry. Company has implemented various strategies to attract
and retain its customers but complex behaviour of customers has resulted into
unsuccessful result of adaption of various strategies (Carmona, Climent and Momparler,
2019). Bank has implemented various strategies but still they are ranked last in credit
card issuer survey. There is an increase in customer satisfaction level but the level of
competition has made it difficult for company to enhance its position in market and lead
to market in South east Asia.
 Strategic marketing problem no. 3: The another strategic marketing problem analysed
is that OCBC bank is operating in an industry where homogeneous products and services
are offered which makes it difficult for bank to gain competitive advantage and retain its
loyal customers. The increase in level of competition and high threat of substitute has

unable bank to lead higher position in market and expand its business. This has impacted
its profitability and decreased market share.
Proposed solution to problems
HRM problem no. 1: Employee retention
Employees are the pillar of organization and it is very essential to retain skilled and
talented employees. OCBC bank is required to adapt motivational strategies to motivate
employees and provide rewards and incentives according to their performance which can lead to
employee satisfaction and employee retention.
HRM problem no. 2: Workplace diversity
The OCBC bank is operating in global market where it is has to hire employees from
different culture and background (Gomez and Bernet, 2019). Bank is required to provide training
and induction to new employees to make them understand their role and responsibility and work
culture of company.
HRM problem no. 3: Training and compliance
The OCBC bank is required to conduct various training programs which can enhance
performance of employees. The trainings which are to be provided are in service training, special
training, delegation training, technical training, etc.
Marketing problem no. 1: Recruiting talent
OCBC bank is required to develop a valuable employer brand and attract employees by
conducting timely recruitment. Company is required to give good offer to skilled employees to
attract them and provide healthy work culture with growth opportunities to ensure retention of
hired talent.
Marketing problem no. 2: Retaining customers
The increase in competition has made it difficult for OCBC to retain its customers as
other banks are providing effective and efficient products and services at reasonable rate.
Company is required to work on innovation and attract customers through efficient promotional
schemes (Mahmoud, 2019). The marketing mix strategy will enable company to retain its
customers through understanding competitors and their strategies.
Marketing problem no. 3: Maintaining the sufficient budget

Company is required to take analyse the areas where it is lacking and there is increase in
cost in comparison to budget set. OCBC bank is required to implement effective tool that will
make effective budget report and it will also monitor the budget with actual expense. Company is
required to implement digital marketing strategies to decrease the marketing cost.
Strategic marketing problem no. 1: Hiring top talent
OCBC is required to evaluate the requirement of employees and hire employees
according to their qualification and skills. Company is required to implement various strategies
to attract talented employees and ensure timely recruitment of them. OCBC is required to follow
various recruitment and selection procedure to hire talented and skilled employees.
Strategic marketing problem no. 2: Too much competition in market
Company is required to assess its competitors through Porter's five force framework and
evaluate strategies that are used by competitors. This will enable bank to understand its
competitors and their strategies and adapt strategies which can ensure competitive advantage to
OCBC and ensure strong customer base.
Strategic marketing problem no. 3: No product or service differentiation
To increase market share and ensure higher customer satisfaction, OCBC is required to
implement Porter's generic strategy and Ansoff's growth matrix. These strategies will enable
company to gain competitive edge and attract more customers in homogeneous market.
Best fit solution
HRM problem: OCBC is required to launch various training and compliance programs which can
increase performance of employees and ensure employee satisfaction (De Sousa Sabbagha,
Ledimo and Martins, 2018).
Marketing problem: Digital marketing strategy and adaption of new technology will reduce
marketing cost to company and will also ensure higher customer satisfaction.
Strategic marketing problem: OCBC bank is required to continuously invest in innovation and
research and development.
Recommendations on research
 The scope of research is to be expanded to get more appropriate result.
 The scholar is required to take more sample size and use better sampling method.

 For getting deeper insights, hybrid approach of indulgence is also extended.
Action plan
Problem Strategy or
action
Resources Monitoring Time
Issue of time A method gives
quicker outcomes
would be
followed.
An online course
has to be
subscribed in
order get
understanding of
such method.
It would be
reviewed by self
check method.
The new practise
would be
imparted for 1
month.
Higher cost issue To deal with the
notion cost
effective methods
would be
practises.
For fulfilment of
the aim some
books would be
reviewed.
It will be
monitored by my
peers.
2 months.

REFERENCES
Books and Journals
Benzaghta, M. A. and et.al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights. 6(1). pp.55-73.
Bhutta, Z. M. and Zafar, S., 2019. Impact of HRM practices on employee engagement: Evidence
from banking sector of Pakistan. NUML International Journal of Business &
Management. 14(2). pp.140-156.
Carmona, P., Climent, F. and Momparler, A., 2019. Predicting failure in the US banking sector:
An extreme gradient boosting approach. International Review of Economics & Finance.
61. pp.304-323.
De Sousa Sabbagha, M., Ledimo, O. and Martins, N., 2018. Predicting staff retention from
employee motivation and job satisfaction. Journal of Psychology in Africa. 28(2).
pp.136-140.
Dwivedi, A. and McDonald, R., 2018. Building brand authenticity in fast-moving consumer
goods via consumer perceptions of brand marketing communications. European Journal
of Marketing.
Gomez, L. E. and Bernet, P., 2019. Diversity improves performance and outcomes. Journal of
the National Medical Association. 111(4). pp.383-392.
Grewatsch, S., Kennedy, S. and Bansal, P., 2021. Tackling wicked problems in strategic
management with systems thinking. Strategic Organization. p.1476127.
Khan, N. and et.al., 2019. Diversity in the workplace: An overview of disability employment
disclosures among UK firms. Corporate Social Responsibility and Environmental
Management. 26(1). pp.170-185.
Lim, P. and Parker, A., 2020. Case Study: OCBC Bank Singapore. In Mentoring Millennials in
an Asian Context. Emerald Publishing Limited.
Mahmoud, M. A., 2019. Gender, e-banking, and customer retention. Journal of global
marketing. 32(4). pp.269-287.
Minkov, M. and Kaasa, A., 2020. A test of Hofstede's model of culture following his own
approach. Cross Cultural & Strategic Management.
Rindova, V. and Courtney, H., 2020. To shape or adapt: Knowledge problems, epistemologies,
and strategic postures under Knightian uncertainty. Academy of Management Review.
45(4). pp.787-807.
Shah, M. and Asad, M., 2018. Effect of motivation on employee retention: Mediating role of
perceived organizational support. European Online Journal of Natural and Social
Sciences. 7(2). pp.pp-511.
Werth, O. and et.al., 2020. Influencing factors for the digital transformation in the financial
services sector. Zeitschrift für die gesamte Versicherungswissenschaft. 109(2). pp.155-
179.