Strategic Analysis and Planning for Metro Bank Business Development

This report provides a detailed analysis of Metro Bank's business strategy, focusing on its mission, vision, and objectives. It examines how these elements inform strategic planning and the factors considered in formulating business plans. The report evaluates the effectiveness of techniques like SWOT analysis and nominal ranking used in strategic development. Furthermore, it analyzes alternative strategies for market entry and growth, justifying the chosen approach. It assesses the roles and responsibilities in strategy implementation, resource requirements, and the contribution of SMART targets. The report offers insights into Metro Bank's strategic direction and implementation, with the aim of helping the bank expand its services and branches within London. The report covers various aspects of the bank's operations, its strategies, and the factors that influence its success in the competitive banking sector.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Assessment of business mission, vision, objectives, goals and core competencies inform
strategic planning........................................................................................................................4
M1...............................................................................................................................................5
1.2 Analysis of factors which is considered in formulation of strategic plans...........................6
1.3 Evaluation of the effectiveness of techniques used when developing strategic business
plans ...........................................................................................................................................7
TASK 2............................................................................................................................................8
Covered in PPT...........................................................................................................................8
TASK 3............................................................................................................................................8
3.1 Analysis the appropriateness of alternative strategies relating to market entry, substantive
growth.........................................................................................................................................8
D1................................................................................................................................................9
D2................................................................................................................................................9
3.2 Justification of the strategy.................................................................................................10
M2.............................................................................................................................................10
TASK 4..........................................................................................................................................10
4.1 Assessment of the roles and responsibilities of person who are charged with strategy
implementation..........................................................................................................................10
4.2 Analysis of the estimated resources requirements for implementation a new strategy .....11
D3..............................................................................................................................................13
4.3 Evaluation of the contribution of SMART target to the achievement of strategy
implementation .........................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A strategy which supports to a business entity to perform their business activities in an
arranged and planned manner to attain their desired and decided objectives in a time limit
(Chang and Chuang, 2011). Most of the business plans and strategy are having effective for a
limited time period and most of the time a business entity creates a plan for more then 3 years.
Finance raising, funding, action plans, new market entry are covered in a business strategy which
helps to the company to make their actions in proper way. Fund allocation is major task for an
organisation to produce their qualitative work with the minimising their expenses and
investment. This present report is based on the Metro Bank which is situated in the London, it is
a public limited organisation. The bank was established in the 2010 and it's leaders wants to
increase their branches and services in all over the London in next 10 years. So now it is
essential for them to make a business strategy to develop their structure to increase the number of
branches. The below presented report is containing details on mission, vision and objectives of
the organisation and business plan to achieve their objectives. It is essential for them to make an
alternative plan for them for market entry and substantive growth of the organisation. At the last
this report is having it's focus on the strategy implementation which helps to them to attain
SMART objectives.
TASK 1
1.1 Assessment of business mission, vision, objectives, goals and core competencies inform
strategic planning
Most of the organisation set out their business mission, vision and objectives and goals
which helps to them to perform their activities (Woodcock, Green and Starkey, 2011). It is an
essential part for the companies to move forward in a direction which helps them to be
successful. As the Metro Bank is having their own mission and vision which are described under
here;
 Metro bank wants to be one of the most supportive financial group who is providing help
and supports to the individuals and business clients to achieve their objectives.
 The organisation can provide customized financial solutions to their clients to help out
them, to be a leader in their market.

 The bank wants to expand their scope of reach to their clients to provide better
convenience to them to communicate and deal with the bank.
 Bank relies on the trust, honesty, integrity to provide services to their clients to make
them successful to achieve their financial goals.
 The Metro bank is committed to enhance skills and abilities of the employees to make
them more professionals to provide better assistance to the clients.
 The bank wants to be first choice of the clients which have trust on bank and relies on
them to take a financial decision.
So these are some of the mission and vision are given which set out a direction for the
organisation to make their steps (Meskendahl, 2010). As the organisation wants to deliver their
services to their clients which helps them to attain their objectives in a proper way and the
organisation wants to be more effective to provide better financial assistance by enhancing their
employees skills and abilities.
So it helps to the organisation to make their strategies according to their mission, vision
and objectives. As Metro Bank is a newly open public limited bank so they wants to increase
their services, scope and branches in all over the London. So these objectives helps to the bank to
make their strategy accordingly to reach out their objectives. They have to make their strategy
accordingly by which they can provide more better services to their clients which can increase
their clients trust, faith on them. As well as they have to allocate a funds for the skill
development program for their employees by which they can increase their business in the
market. Expertise is an essential element for the organisation which can generate a power in their
employees to perform in any type of market conditions.
Core competencies of the employees, leaders and managers are also considerable for the
bank cause it helps to the leaders to make their business strategy according to the abilities and
competencies of the employees (Astrachan, 2010). Mission and visions are related to the product
and services which are provided by the organisation, objectives are focused on the personal
growth and revenues and core competencies are related to the organisational skills which help to
the leaders to make their business plans for a long period of time.
M1
Assessment can be made on the basis of the organisation which are working in the
banking sector, Bank Of England and another organisations are having their business plans.

Which helps them to act accordingly. So as Metro Bank also have to set their business plans to
attain their objectives in the pre decided time limits.
1.2 Analysis of factors which is considered in formulation of strategic plans
Many of the factors are effect on the business strategy and especially on the time of
formulation. As the Metro bank is having their target to increase their market and branches by
providing a satisfaction to their customers (Teece, 2010). It helps to them to increase their
business in the London. Leaders have to make an effective business plan which helps tio the
bank to attain their objectives in pre decided time period. As the organisation wants to increase
their branches more than 250 in the London till 2020. so they have to make their proper business
plan which helps them to attain their targets in their time limits. It is essential for the leaders and
managers of the bank to make an effective formulation of the strategies so they have to make
proper focus on the objectives to make their business plans accordingly. Many of the factors can
make influence in the formulation which are given under here to analyse;
Abilities of leaders: Mainly leaders are playing an important role in the strategy making so a
strategy is based on the abilities of the leaders. Strategy formulation is a confidential process
which is done under between the managers and leaders so it a factor which can impact on the
formulation stage. It is essential for the bank to make an effective business strategy on the basis
of the abilities of the leaders and managers. Strategies are based on the leaders so it is highly
affected by the leaders potentials, as the organisation is having a target to expand their business
activities so it is essential for the management to make proper analysis of the situations. Leaders
are having some qualities which can consider the success of the business strategy so leaders has
to make their focus on the targets and make policies accordingly.
Skills of employees: People which are committed in the formulation process can create an impact
on the formulation of the business strategies. A business strategy is based on the data which is
collected by the employees for the organisation, so it is based on the employees that how much
authentic and useful data they collects to make an effective business planing to increase the
organisation scope.
Market rivalries: Competition in the market can create an impact on the formulation stage of the
business strategies. Banking sector in the UK is having a high competition which can decrease
their profits while providing their services to the customers and as well as it can decrease the
number of clients (Cinquini and Tenucci, 2010). So it is essential factor which have to be

consider in the formulation stage by the leaders and managers to increase the effectiveness of the
business plan to beat the market competition.
Market analysis: It is essential factor which helps to the leaders and managers to create a
business plan for the bank. They have to make proper market analysis to manage their actions to
beat the market rivalries and manage a ratio for their profits by providing their services to their
clients. So their leaders have to involve their skilled employees in the market analysis to take
better results and data form the market.
Customers analysis: As the bank is working for those clients which wants to do a business in the
market so they are providing financial help and advice to them to increase grow up their
business. So it is essential for the bank to analyse the demands and needs of the customers to
provide them better results by their making an appropriate business strategy.
1.3 Evaluation of the effectiveness of techniques used when developing strategic business plans
Leaders and manages are used techniques to make their business plans it is essential for
them to make an effective business plan so they have to use effective techniques in it. As the
Metro bank wants to increase their number of branches in the London, leaders have to ensure
that techniques which are they using in developing a business plan is effective or not for them.
Some of the techniques are here which can be used by them to develop a business strategy;
SWOT ANALYSIS: Most of the leaders and managers use this tool to make an analysis of the
market and organisation (Pagani, 2013). Strength, weakness, opportunities and threats can be
helpful for the organisation to create a full analysis of the bank. By this bank can know that
factors which are stronger in them and they can use this factors to increase their market share. As
well as by this they can analyse the element which are reducing their effectiveness and which are
the loopholes of them. So it can help them to know that factors which have to be improved by
them in a time period and as well as which can reduce the effectiveness of the business plan.
Opportunities and threats provides a details for those factors which can increase their market,
opportunities can be utilized by the managers to increase their market share. Risk factors can
decrease the effectiveness of the bank so they have to make their proper focus on the it. So this
SWOT analysis can be beneficial for the leaders and managers to analyse the market and
organisation to make a proper business plan. It is highly effective for the big structured
organisation to increase their market share and revenues. They have to make a proper analysis by

using this tool it can help to the management to make a proper internal analysis of the
organisation by it organisation can determine the business strategy.
Nominal ranking: It is a planning tools which cab be used by the organisations to set out their
prioritize (Klettner, Clarke and Boersma, 2014). It is a tools which emphasise on the listing
process which is done by the leaders and managers in the organisation to make their business
plan. After the listing process managers have to vote on the listed items to give prioritize
rankings. It can help them to make a rank of the needs of the organisation. It is not an effective
techniques because it has a risk for the managers and leaders of forgetting an essential factor
from the list. It can be helping tool for the organisation to set out their prioritize but it can not be
effective to make a business strategy. It can help to the company to set the priorities in the
changes it can help to the company to make a better analysis of their demands.
BCG Matrix: It can be helpful for the organisation to evaluate the organisation's products and
services in two different ways one is market growth and market share. These both are the needs
of the Metro Bank (Oltra and Luisa Flor, 2010). It can help to the organisation to make an
identification of the strategic plan for a service which can be effective for the organisation. It
emphasis on the market growth and market share which help out the bank to analyse the capital
funding according to the market needs. High market share and lower market growth needs a little
investment but if opposite situation is available than organisation have to make more investment
in the market.
TASK 2
Covered in PPT
TASK 3
3.1 Analysis the appropriateness of alternative strategies relating to market entry, substantive
growth
As the bank wants to increase their market they have to make a back up plan for make
their entry in the new market. Some of the alternative strategies are here for the market entry of
the bank;
Franchising: An organisation like; metro Bank can increase their market and provide better
convenience to their customers by making franchisee in the market. As the Metro Bank are
currently focusing on the London but they can increase their criteria to deliver their services. By

this strategy bank can give their rights to an another organisation to provide their banking
services in to a particular area (Hsieh and Chen, 2011). It has a need of the high recognition of
the brand in that particular area.
Licensing: By this Metro bank can give their license to an another organisation which is relevant
or not to the banking sector to perform and provide their services on behalf of the Metro bank in
a particular geographical area. It is an authenticated process and useful for the organisation
which wants to increase their market share by increasing their criteria to deliver their services.
Metro banks can provide a license to the shopkeepers and retail stores to make banking
transaction on behalf of them.
Merger: It is a most prevalent strategy for the banking organisations but mergers in between the
same level organisation will be beneficial for the both. So Metro Bank has to be merged with the
a relevant bank which is having same market share.
Substantive growth strategies are here to manage a basic growth of the Metro bank;
Horizontal and vertical integration; It helps to the organisation to manage their basic
development in the revenues, market share and scope of working (Reinhardt and Stavins, 2010).
Horizontal integration is related to the acquisition in between the organisation which are dealing
in the same sector e.g. Metro bank can acquire with the another bank which are having same
market share and business according to the Metro bank. In the vertical integration bank can
acquire with the company which is currently not working in the banking sector. It can be used
by the Metro Bank to develop their market and as well as their revenues according to their
objectives.
It is essential for the Metro Bank to manage a limited growth of the bank to manage their
revenues by their acts so here are some strategies which can be used by the organisation;
Market penetration: It is related to the limit of qualities and features in the products and services
which can be helpful for the organisation to recognise in the market by their products and
services. So it is essential for the Metro Bank to develop some features in their services which
can be helpful for them to provide more better assistance to their clients and as well as to create
milestone in the banking sector (Verreynne and Meyer, 2010). As they are targetting on the
clients which wants to develop their business so they have to provide their proper guidance in
financial decision making as per the market needs of them. It helps to the Metro Bank to increase
their market share and as well as to increase market recognition.

Franchisee can be effective for expanding business in other market so it is essential for
the management to make a proper analysis of the parties which are interested to take franchisee.
D1
Most of the banking organisations are using License process which helps to them to
increase their working area, I personally believes that banking organisations have to provide
their license to those business entities which are having a goodwill in the market. Which can
increase their market share and covering geographic area.
D2
Managers and leaders are having responsibilities to manage activities of the employees
which are committed in the business plan. They have to provide proper guidance to their
employees to analyse the those business entities which are interested to merge, franchisee and
license of the Metro Bank.
3.2 Justification of the strategy
As the Metro Bank has an objective to open more than 250 branches in the London till
2020 so they have to use proper market development strategy which help them to increase their
market share (Nordqvist and Melin, 2010). So they have to use licensing process it helps them to
provide their services in the whole London. They have to provide license to those firms and
shopkeepers which are interested in it. They can provide them license them to make banking
transaction with in a limit, it can help them to increase their business in the whole London. Most
of the organisation in the banking sector are using licensing process which helps to them to
increase their criteria and provide better convenience to the customers and clients which have a
need of daily banking transactions in their daily routine. So Metro bank can use it to increase
their banking counters in the market.
To manage a substantive growth of the banking, Metro can use horizontal integration
which helps to the bank to increase their reach to their targeted market. By this bank can provide
more help to their target audience and they can make better services for the clients which are
working in this process (Hoejmose, Brammer and Millington, 2013). Market penetration is also
can be useful for the organisation, by this they can increase their features and characteristics in
their activities which help them to create a different recognition in the customers. So these all
strategies are helpful for the bank to increase their revenues and as well as grip on the market.

M2
According to the Dynamic concept a strategy can be justified by objectives, achieved and
remaining concept. Metro bank can implement their business plan by using their employees,
managers have to evaluate it results after each and every quarter if they are not having an
appropriate results according to the desired outcomes, they have to make changes in it.
TASK 4
4.1 Assessment of the roles and responsibilities of person who are charged with strategy
implementation
Leaders and managers of the bank is having responsibilities for the implementation of the
business strategy on the organisation. So they are having a huge responsibility to implement it
successfully thus organisation can achieve their objectives. An assessment of responsibilities is
described under here for the implementation of the business strategies;
Strategic plans in operational reality: It is an essential part for the leaders and managers realise
their plans in the actual conditions so they have to make their plan is effective or not as per the
actual conditions of the organisation (Parnell and et. al., 2012). It is a necessary for the
organisation and as well as to the leaders and managers to implement a plan which is having all
the features which they needs to apply on the organisation, otherwise they cannot attain their
targets and objectives.
Communication: It is a significant part for the organisation and as well as for the company to
make their proper communication with the employees and team which are committed to
implement business plan in the organisation. By this managers and leaders can convey their plan
and it's implications to the team members. It is essential for the managers to initiate in the
communication process cause they are having direct link with the employees which are
committed in the business strategy. They have to provide proper guidance on them if they are not
following business plan. They can resolve the queries of the employees and as well as the clients
also which are having affect of the business strategy.
Identification of the teams: Implementation can be successful if the managers and leaders make
their proper focus to identify a team which is able to perform according to business strategy. So
it is an important factor and responsibility of the leaders and managers to makes proper teams to
implement business strategies in the actual conditions (Bharadwaj and et. al., 2013). Managers

are having knowledge of the skills and abilities of the employees which are working in the
organisation so they can make better team to follow the business plan.
So the above analysed work is a responsibility of the managers and leaders so they have
to be communicator to provide proper assistance to the employees and as well as to provide
proper guidance to them to increase the market share of the organisation. Leaders are having a
responsibility to make an effective plan according to the needs of the organisation and manages
are having a responsibility to implement it successfully.
4.2 Analysis of the estimated resources requirements for implementation a new strategy
Resources are the necessary part for the leaders and managers to implement their
business strategies in the actuality. As the Metro Bank is having objective to increase their
branches in all over the London so they have to make proper implementation of their strategies.
Allocation is based on the business strategy and essential elements to implement in it actuality of
the organisation (Haley, Haley and Tan, 2011). It can classified in to the finance, human
resources and materials which the leaders and managers wants to implement in the organisation's
well being. An analysis is here on the required factors to implement;
Finance: It is an essential element to execute and implement business strategy, each and every
activity which is performed by the implementers is having need of finance. It is a type of
investment in the organisation which can give their long term benefits. So the managers and
leaders have to make section of that factors which are having huge need of the financial
investment. It helps to the managers and leaders to analyse the amount or finance which is
required for the organisation to invest in the business strategy in the next 3-4 years. So managers
and leaders have to make their proper allocation according to the each and every next year. By
this they can arise their funds and manage their funds as per the needs of the development.
Human Resource: Manpower is a need for the managers and leaders to implement their business
plan in the actual conditions, as the Metro Bank wants to increase their market so they have to
analyse the business entities which is interested to get a license and perform banking activities on
behalf of them. So human resource is a needs of the organisation to execute their business plan
for the betterment of the organisation. People which are having skills to execute their services to
develop their business plans (Spender, 2014). So leaders and managers have to communicate
their plan in between the team members and generate the queries of the employees. As well as

managers have to know form the employees which are interested to act in the business strategy
implementation.
Materials: Transportation, computers, furnitures and buildings are some of the example of the
materials which is a requirement of the organisation to implement their business strategies in the
organisation. So managers and leaders have to make proper allocation of their materials which
can be useful for them to implement their business plan. Organisation can provide their assets to
the employees which are committed in the implementation process of the business plan.
Managers have to make guide their employees and as well as they have to know the needs of the
employees to act according to the business plan (Hamel, 2012). Effective implementation is
having need to use resource on the right time and right place which is a responsibility of the
managers and leaders to provide all the materials to their employees.
D3
Managers are having huge responsibilities in this task and they have to make proper
allocation of their resource without taking any affect on the organisation' business activities. As
well as they have to make their focus on the budget to manage the cost effectiveness as per the
budget. They can provide vehicles which is fuel efficient to their employees to make a market
survey and analyse to the business entities.
4.3 Evaluation of the contribution of SMART target to the achievement of strategy
implementation
For achieving the targets which have been set by the management leaders of any
enterprise requires to sustain with a better strategy which can assist them to get their targets
achieved so that they can get quality of response from their actions. There are some SMART
targets or goals which have been set by managers of Metro bank in which they can achieve their
purposes for which they are running their business. SMART goal setting actually consists of five
elements which are required by managers to comply with during the formation of strategies.
These elements are mentioned below:
Specific: strategies must be specific in which they should know what they actually wants
to achieve through such strategies and how they will attain such objectives (Teece, 2010). As
well as it must be clarified that where they want to attain such stuffs which they have marked as
their purpose.