Strategic Management Assignment Example

Strategic Management
UOB Bank Strategy Analysis
Student’s name
Name of the Institute

Strategic Management
PART A
Executive Summary
UOB i.e. United Overseas Bank is multinational Singaporean banking organization. The
bank has branches across multiple countries. It has 500 offices worldwide. The bank provides
standardized service across different parts of the country. The bank is famous for its strategic
alliances with other companies and its digital initiatives. It forms strategic alliance either by
merger or acquisition. The following report describes the strategic analysis of the bank. It is
divided into three sections. Part A constitutes introduction of company, its external analysis
(using 5 force porter analyses), internal analysis (using Value chain Analysis), its weaknesses
and threats, area of improvement. Part B has SWOT analysis and strategy. Part C is for
individual learning from assignment like learning about strategy process model, strategic
alliances etc.

Strategic Management
Introduction
Its headquarters is mainly in Singapore with branches mainly in Southeast Asia. It was
setup in 1935 with group of Chinese born businessmen. In terms of total assets, it is one of the
largest banks in South East Asia (Acharya, 2014). United Overseas Banking has 60+ branches in
Singapore. It has network of 500 offices in 19 countries in Western Europe, Asia Pacific and
North America. UOB mainly provides insurance services, investment, venture capital, corporate
finance, private banking and asset management, personal financial services, commercial and
corporate banking services (Ab Rahim, 2015). Majority of their operations are in Malaysia,
Brunei, Myanmar, Indonesia, Thailand, Vietnam and Philippines. Its subsidiaries include UOB
Bullion and Futures Limited, United Overseas Insurance Limited, UOB Asia Investment Partners
Pte. Ltd., UOBBF Clearing Limited, UOB-SM Asset Management Pte. Ltd., UOB Asset
Management Ltd, UOB Venture Management Private Limited, Far Eastern Bank Limited. The
bank has joint venture with United Orient Capital Pte. Limited. The UOB-Kay Hian Holdings
Limited is its associate.
External Analysis
5 Force Porter Analyses in Banking Industry
Threats of New Entrants (Low): Even when there are capital and regulatory requirements, the
banks are opened every year. But due to stringent laws and volatile market the threat of new
entrant is low. The main factors that affect the threat of new entry barriers: Skilled manpower,
regulations and Government licensing, large amount of initial investment, global banks,
protecting intellectual property rights. For example, it requires a great deal of investment and
license to open a bank, hence threat is low. That is there are only hundreds of banks in country.

Strategic Management
Bargaining power of suppliers (Moderate): For UOB or other banks this includes FED,
regulatory bodies of different countries and strategic alliances. All these parties has good amount
of control over customer deposits, loans from financial institutions, mortgage security and loans.
It depends on economic outlook, operations onshore and offshore, role of regulatory authorities
in affecting bargaining power. The bargaining power of supplier is moderated. For example,
MAS (Monetary Authority of Singapore) have a system of check and balances over banks in
Australia.
Bargaining power of Buyers (Medium): The buyers are customers and SMBs (Small and
Medium Businesses). This power is high because high switching cost, customers are loyal.
However due to technology, these factors have taken back seat. Now customers are more
informed and can switch to other bank easily. The bank competition, retail lending, multiple
options affect their decision. For example, any individual or corporation in Singapore can
account in any bank as switching cost of also low.
Competitive Rivalry (High): This industry is very competitive and intense. There are lot of
mergers and acquisitions taking place. There are so many players of the similar size. There is
high price competition and less product differentiation. The exit barriers are high. All the banks
more or less use the same strategies. The growth rate of markets is low. For example, customers
can got to any bank to open account or take loan.
Threat of Substitutes (Low): Largest substitutes are non-financial investors, borrowing avenues,
non- banking financial corporation. They attract good amount of market share. There is no
substitute for withdrawals and deposits. The main factors that affect the threat of substitutes in