Analysis of Inter-Organisational Strategic Direction for SBGL Report

This report provides an in-depth analysis of the inter-organisational strategic direction of Stanbic Bank Ghana Ltd (SBGL). It begins with an introduction to the company and its objectives, followed by an examination of the relationships between different partners in policy development and their impact on strategies. The report explores the contributions of various external factors, such as political, economic, and social influences, using a PESTLE analysis. It then assesses the roles of domestic, national, and multi-national interests in policy translation. The report further evaluates the policy positions of different partners, addresses potential tensions and conflicts of interest, and proposes a model for inter-organisational working. Key economic drivers, the impact of finance and funding, and strategies to meet unexpected operational activities are also discussed. Additionally, the report reviews methods and theories of inter-organisational strategic planning, suggests alternatives for improvement, and forecasts future events. The conclusion summarizes the key findings and recommendations.

Inter-Organisational Strategic
Direction

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
1.1 Relationship between different partners in development of policy and its impact on
strategies ...............................................................................................................................1
1.2 Contribution of various external factors on the development of inter-organisational
strategy ..................................................................................................................................3
1.3 Role of domestic, national, and multi- national interests in the translation of policy......5
TASK 2............................................................................................................................................5
2.1 Evaluating policy position of different partners involved in implementation of strategies . 5
2.2 Evaluation and solution of tensions and conflicts of interest in the roles of different
partners...................................................................................................................................6
2.3 Developing model for inter-organisational working........................................................7
TASK 3 ................................................................................................................................8
3.1 Key economic drivers of inter- organisational policy and strategy..................................8
3.2 Impact on existing policy commitments of the finance and funding of operational
activities..................................................................................................................................9
3.3 Ways to meet unexpected operational activities..............................................................9
TASK 4 .........................................................................................................................................10
4.1 Reviewing methods and theories of inter-organisational strategic planning .................10
4.2 Alternatives to improve inter- organisational strategic planning and coordination.......12
TASK 5 ...................................................................................................................................13
5.1 Review of various external factors which can make impact on inter-organisational policy
..............................................................................................................................................13
5.2 Forecasting likely future events relating to inter- organisational policy and strategy. . .14
5.3 Innovative solution for achieving better outcome..........................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Every organisation has some mission and vision which play crucial role in deciding their
short as well as long term strategies. If a company want to attain some targets than they have to
get strong internally because it will help them in facing various challenges. Their are many
business groups in this world who are operating in different industries, they want to expand their
organisation in order to earn more revenue. Diversity is considered as one of the best strategy for
long term survival, it reduces the chances of facing severe loss as if one company fail to give
expected return than other can balance it by providing necessary profit. Stanbic Bank Ghana Ltd
(SBGL) is the part of Standard Bank Group working in Johannesburg, South Africa. They are
strong in their domestic market in Africa but the Standard Bank Group is also running their
business in other countries. This assignment will discuss about policy development and its
impact on an organisation. Analyses of external factors like politics, economy, society etc. will
also become part of this project (Adeoye and Elegunde, 2012). An enterprise has to face conflicts
at the time of implementation of policies, these issues will be explained under this report.
Elements like risk, resources, etc. relating to the markets where cited group is working will be
included for discussion. This file will discuss about inter-organisational strategic planning and its
implementation of various plans. Some research will also get cover under this assignment.
TASK 1
1.1 Relationship between different partners in development of policy and its impact on strategies
An organisation take views of many people before making any plan. Stanbic Bank Ghana
Ltd banking services can share various information with their retail business by taking
permission of Bank of Ghana, this will help to organisation in making and implementing sound
strategies. Their are three main parties in formation of policy, first is top level management,
second is middle level managers and third is employees who work at ground level. If relation
between two sides are strong than organisation can make sound strategy and attain their goals in
an effective manner. In cited organisation, board of directors discuss various problems with
senior managers because they fill the gap between a worker and highest authority of enterprise.
The reason behind continuous success of Stanbic Bank Ghana Ltd is strong relationship between
customers and bank (Bianchi and et. al., 2011). Middle level managers gather data and other
information, they present it in-front of top level management at the time of making policies
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relating to investment and other major expenditure. Cited organisation organise meeting between
these two sides on continuous basis. They understand that its impact is crucial for the success of
firm because issues relating to employees, reducing cost of operation, etc. can easily get solved if
their connection is strong. Senior manager are considered as the bridge between highest
authorities and the workers at retail stores.
Source: New Journal Article: Inter-Organizational Resource Coordination in Post-Disaster
Infrastructure Recovery. 2017
Strong relation between middle level management and employees can improve overall
health of organisation. Ground staff communicate the demand and expectation of customers to
their seniors so they can make various policies for targeting right consumers by launching correct
products (Calamel and et. al., 2012). Connection between these two sides can help setting
realistic targets, their execution can be done in an effective manner. SBGL is trying to expand
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Illustration 1: Post-Disaster Infrastructure Recovery

their business in other segments also like insurance. Manager at high post are asking employees
to promote these items so they can implement their policies in an effective manner. Top level
managers can not understand the tactics which hare used at ground level, they have to make
strong connection with the workers who are working at ground level so organisation can get
reviews of customers and make their future plans accordingly (New Journal Article: Inter-
Organizational Resource Coordination in Post-Disaster Infrastructure Recovery, 2017). People
who are working for SBGL are helping their branches in implementing their strategies, they are
providing them necessary information about various sources of funding which competitors of
cited organisation are using in their business.
1.2 Contribution of various external factors on the development of inter-organisational strategy
An organisation has to consider many elements at the time of making any policy. They
can control internal components but an enterprise cannot ignore other factors like economy
politics etc. Following is PESTLE analyses of cited organisation:
Political – SBGL earn most of the revenue from their domestic country i.e. Africa. After
down fall in the world economy, all the branches of this Standard Bank Group are facing issue
like low demand of products and services etc. Top level management of this group understand
that they have to make inter-organisational policy. Cited organisation want to deliver affordable
products and services to their customers. Government of Africa is reducing subsidiary which
they were giving to the farmers, this move will result in low quality raw material because
peasants will reduce standard of an item in order to get same amount of revenue which they were
getting earlier. This will make a negative impact on the business of SBGL as class of finished
goods which they were offering will go down. They have to change their strategy for maintaining
current level of revenue.
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Source: What is PESTLE Analysis? A Tool for Business Analysis. 2017
Economical – Most of the African countries are facing problem of low economic growth.
Cited organisation is also facing this problem because demand of various commodities are going
down and they have to change their policy for coping up with this issue. SBGL bank is also
suffering from same trouble, top level management of this organisation can adopt a new strategy.
They can order SBGL bank to provide monetary assistance to their retail company because it
will solve problem of low demand for both the firms. Banking segment has significant amount of
contribution in their revenue of cited enterprise, if they connect two different companies than
they can retain their position as a table leader.
Social factor – Top level management of SBGL understand that, nowadays, people are
preferring to use financial services in festive seasons which can help to enjoy their festivals in a
better manner. Demands gain more in this time and it creates a huge pressure on the organisation
to accomplish the needs within a particular time period which can help to the company to earn
more profits by this (What is PESTLE Analysis? A Tool for Business Analysis, 2017).
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Illustration 2: What is PESTLE Analysis?

Management of this enterprise want to investment in product and services that can help society
in living a better life. They are enhancing services in banking in another markets and mainly in
the rural areas where they can improve their turnover. Highest authority of SBGL understand the
importance of an communication so they are investing more amount in providing affordable
connectivity in it's branches.
1.3 Role of domestic, national, and multi- national interests in the translation of policy
Cited organisation want to hold the top spot in their retail banking sector. They have
strong presence in almost every part of Africa and they are working on capturing more shares in
the present market. Top level management of this organisation understand that they cannot
depend on one country so they have started investment huge sum in other nations. Economy of
Africa is facing a tuff time so cited bank do not like to expand their business in this region, they
are looking towards emerging markets of Africa. Some African countries are ready to provide
some special deduction to this organisation because they understand that this enterprise can
invest huge amount which will enhance number of job in the nation. This can be considered as
one of the main reason which has convinced cited company to enter in country. Other division of
this Standard Bank Group like Finance and insurance is working in small but emerging markets.
They can take support of retail business if this company of group want to enter in more African
region.
TASK 2
2.1 Evaluating policy position of different partners involved in implementation of strategies
SBGL is very strong in their domestic market, they have deep pocket and they are
considered as table leader in their operating industry. This organisation of the cited group is
expanding their business in emerging and they are making various strategies relating to
enhancing their revenue in African market. On the other hand, SBGL bank is running in a joint
venture with Standard bank group. Executives of this organisation cannot make an important
decision without get approval from the management of Bank of Ghana. Retail business of cited
enterprise is working on high production of that products, they want to shift their focus on non
developed market of the Africa. In present scenario, this strategy is giving them extra edge over
their competitors.
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SBGL bank is not making an policy for expansion, they only want to concentrate on the
present region where they are currently operating. This joint venture is holding one of the top
spot in banking sector of Africa. This organisation of this group has adopted different tactics in
their business. Their main aim is to enhance profit of group by providing affordable goods &
service and they are implementing their their set plans in an effective manner. SBGL is in
partnership with many other organisations in different markets. This firm is dependent on the
business of cited company because they help them in earning high revenue by increasing their
total sales (Kim, Chopik and Smith, 2014).
2.2 Evaluation and solution of tensions and conflicts of interest in the roles of different partners
When two organisations work together, they face various issues which become main
reason of the conflict between both parties. As they are having partnership in their targeted
markets with some stakeholders so they can make an open discussion with them about their
profit sharing. Most of the problem arises when SBGL pay respective share to stakeholders.
They want to receive payment of the goods which they have supplied to the customers of SBGL
in less time. On the other hand, this retail giant want to provide provide quality service to their
customers. They want alteration in their product return policy which is not in favour of their
partner. This can be considered as the prime reason that both parties face tension on frequent
basis.
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Source: Conflict Stock Photos and Images. 2017
Stakeholders also have their own store which create issues relating to conflict of interest.
Cited organisation argue that their partner is stealing some of their permanent customers by
giving financial services at cheap rate. They are also promoting their brand instead of supporting
the company in which they they are operating in the form of partnership. These issues can be
resolved by evaluating their agreement in regular interval of time so they can do necessary
changes without getting in a situation of conflict. SBGL have many partners, they should not
follow the policy of blind trust and managers of both organisation fail to solve conflict then they
should involve third party for resolving any tension (Conflict Stock Photos and Images, 2017).
2.3 Developing model for inter-organisational working
SBGL bank wanted to provide affordable products to their potential customers, they
could target limited number of buyers by operating their retail stores but through online business,
they are targeting more people. SBGL has some stakeholder which provides support to them to
provide better customer assistance. Both parties are working on an effective model, whenever a
buyer order some product from SBGL they ask their partner to deliver it on the name of cited
organisation. If customer want to replace it than they can ask SBGL to replace it and this
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Illustration 3: Conflict Stock

company will pass same order to stakeholders. Cited enterprise take respective amount of share
in the profit which is agreed in their contract. Demand of goods in Africa is going down because
of incidents like global downfall in economy and low economic growth (Hahn, Binnewies and
Haun, 2012). Both firms should focus on bring integrity in their relation so they can stop various
problems at the point of its generation and fight with issues relating to less demand.
Thinking of society is changing, they do not like to visit retail outlets of SBGL people do
not want to waste in travelling. They like to use technology in order to buy something because
customers get more choices and products at less price. Both parties should follow some morals
so they can improve their connection and deliver results according to their set plans. They should
revise their contract on yearly basis and try to resolve most of the issues in short period of time.
Log frame can be the system which is adopted by cited organisation, this will help them in
improving the process of planning and support enterprise in implementing their plans effectively.
This tool connected to main elements of a project and focus on their logical link.
TASK 3
3.1 Key economic drivers of inter- organisational policy and strategy
Management of SBGL understand that they can not depend on their domestic market for
a long time. Slow economic growth of Africa is enhancing their present trouble as demand of
various products is going down. Several stakeholders is a partner of cited firm which supply
beauty items like facial cleansers. Top level management of SBGL understand that they can
expand their business by promoting their online store. Government of Africa is focusing on SME
because they can generate jobs at ground level and in tier 2 cites. Cited organisation has adopted
an effective policy, they are trying to increase their sale by focusing on non developed areas of
Africa where they can easily expand their business activities. Stakeholders is helping SBGL in
selling affordable packages to a large number of customers. Brand name can be considered as
one of the most important economic driver. Partner of cited organisation can use image of the
company with whom they are working in order to get more clients.
Rules and regulations made by government can force both parties to make necessary
changes in their contract. Tax rate is another economic driver that can make a huge impact on
inter-organisational strategy. If one of the partner start facing loss because of changes in new tax
system than it can alter relationship between both sides. Technology has changed the way of
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doing business, cost of money is going down in domestic country of cited organisation. This can
make a positive impact on the current policy of SBGL.
3.2 Impact on existing policy commitments of the finance and funding of operational activities
Two organisation cannot support each other if they do not earn revenue according to their
expectation. Stakeholders of cited organisation who supplies many kind of services on behalf of
the organisation. Both organisation can change their existing relationship in term of financing
and funding. SBGL has deep pockets so stakeholders want them to bear the cost of returned
items and other government formalities. Both companies need to make a contingency funds so
they can cope of with any kind of uncertainty that can arise in business operation (Estampe and
et. al., 2013). Cited organisation can adopt NPV methods because it can provide them
profitability of the venture which will help both parties in making decisions relating to
investment in a project. In present scenario SBGL provide significant amount of share to its
stakeholders but they may have to make necessary changes in their present contract because
number of their partners is increasing and in upcoming time they are only going to work with
those firms who work according to their need.
SBGL is trying to enter in emerging markets, logical framework approach can provide
correct path for planning and evaluating the progress in their international projects. Most of the
countries in Africa are making lucrative policy which is attracting MNCs for investing in this
region. Cited organisation can change their current strategy and focus on these developing
economies because market in these nation are unorganized and purchasing power of people
living in these countries are increasing rapidly (Wootten and et. al., 2014). SBGL can earn more
money by using less funds, this will assist them in getting some extra edge over their competitors
and they can recover their capital expenditure in less time. Logical framework mainly focus on
four areas, first is goals, second is purpose, third is outputs and last one is activities.
3.3 Ways to meet unexpected operational activities
Risk is integral part of any business, every organisation understand that they have to face
various unexpected hurdles at the time of execution of different strategies. Cited enterprise can
make a contingency fund with the help of their partners, it will support them in coping up with
many unpredictable challenges. Provision of this amount should be made at the time of forming
policy for investing in emerging markets. When a company operate in new market, they have to
change their tactics when something unexpected come up. Most of the managers in MNCs
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believe their they cannot set a plan which will help them in confronting any problem that occur
in their business operations.
Cited organisation can use modern methods of accounting like they can record
depreciation by using sinking fund approach. When a company enter in new market, they focus
long term success. This concept will help SBGL at the time of replacing capital assets. They will
not face any major trouble if there is a need to change fixed assets because of any unpredictable
operational activity. Management of cited organisation need to ascertain all the major risk which
they can confront at the time of executing various strategies. They can do case study and
examine the challenges which other organisations of same industry are facing. Hurdle rate is
significant at the time of analysing any investment (van de Kaade Vries and van den Ende,
2015). Suppose rate of return on a project is 14% and hurdles rate is 10% then manager will
accept a programme.
Troubles are part of business and every organisation has to face it but at the same time
they need to analyse its impact because if number of problems is high then management of an
enterprise should not accept a proposal. Cited organisation can adopt a unique policy in order to
minimise the risk of unpredictable operational activities. Instead of doing capital investment they
can use the revenue which they are earning on yearly basis. This will reduce their growth in a
market but they will not face any huge capital loss as they are not injecting much funds.
TASK 4
4.1 Reviewing methods and theories of inter-organisational strategic planning
Cited enterprise can adopt one or more methods for implementation of their set strategy.
All the approaches has their own merits and demerits so Stanbic Bank Ghana Ltd, can adopt
according to their need and feasibility. Following are four types of strategy:
Deliberate strategy – Most of the organisation follow this approach. Top level
management of a company make tactics for achieving mission of the firm. If all the people
working in an enterprise try to plan various activities then they cannot make a proper strategy,
this can be considered as the main reason that board of directors decide the scheme which they
are going to follow for achieving set targets (Shaw and et. al., 2012). Cost leadership,
Differentiation, focus are some of the generic strategies. First one discuss about reducing cost of
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