OCBC Bank Credit Card Customer Loyalty Improvement: Case Analysis

This integrated case study analysis focuses on the challenges faced by OCBC Bank in maintaining customer loyalty within its credit card business, particularly in light of poor rankings in customer satisfaction surveys. The report identifies several key problems, including less motivated employees, cultural barriers, inadequate team management, low customer satisfaction, and competitive pressures. It employs various analytical frameworks such as SWOT analysis, Porter's 5 Forces, Herzberg's motivation-hygiene theory, Hofstede's cultural dimensions theory, and the SOSTAC model to dissect these issues. Proposed solutions range from improving employee motivation and addressing cultural differences to enhancing marketing strategies and leveraging merchant tie-ups. The analysis culminates in a recommended action plan designed to improve OCBC Bank's market position and customer relationships. Desklib provides access to this and other solved assignments for students.

Integrated Case
Study Analysis

Executive Summary
OCBC bank is located in the Singapore which is dealing in varieties of financial services in
this industry. Currently, bank manager has planned that merchant tie ups could be a great action
to attain the success in the market. The bank has decided this because of the poor ranking which
is conducted by CSISG. Several issues have been faced by OCBC banks in last few years which
has created chaotic situation in the internal management too. This research report is describing
the different issues which are occurred in the OCBC bank and the potential reason for the same.
It has also mentioned some solutions for each of the problem which OCBC bank has faced in the
banking industry. This research has also explained the perfect solution through which company
can preserve it value in the global market. A suitable plan of action has been stated which should
be followed by the management.

Table of Contents
Executive Summary.........................................................................................................................2
Chapter 1: Introduction to the case study........................................................................................5
Statement of the problems........................................................................................................5
Research Aims............................................................................................................................5
Research Objectives...................................................................................................................6
Research Questions....................................................................................................................6
Report Structure........................................................................................................................6
Chapter 2: Case Brief.......................................................................................................................6
SWOT Analysis..........................................................................................................................6
Porter's 5 forces.........................................................................................................................7
Chapter 3: Problems Statements and Plan of Analysis....................................................................8
Problem 1....................................................................................................................................8
Problem 2....................................................................................................................................8
Problem 3....................................................................................................................................9
Problem 4....................................................................................................................................9
Problem 5....................................................................................................................................9
Problem 6....................................................................................................................................9
Problem 7..................................................................................................................................10
Problem 8..................................................................................................................................10
Problem 9..................................................................................................................................10
Chapter 4: Analysis and Findings..................................................................................................12
Analysis-1..................................................................................................................................12
Analysis-2..................................................................................................................................12
Analysis-3..................................................................................................................................12
Analysis-4..................................................................................................................................12
Analysis-5..................................................................................................................................13
Analysis-6..................................................................................................................................13
Analysis-7..................................................................................................................................13
Analysis-8..................................................................................................................................13

Analysis-9..................................................................................................................................13
Chapter 5: Proposed Solutions to Problems..................................................................................14
Solution-1..................................................................................................................................14
Solution-2..................................................................................................................................14
Solution-3..................................................................................................................................14
Solution-4..................................................................................................................................14
Solution-5..................................................................................................................................14
Solution-6..................................................................................................................................14
Solution-7..................................................................................................................................15
Solution-8..................................................................................................................................15
Solution-9..................................................................................................................................15
Best Fit solution........................................................................................................................15
Recommendations....................................................................................................................15
Action Plan...............................................................................................................................16
Limitations................................................................................................................................16
Scope for Research..................................................................................................................16
References......................................................................................................................................17

Chapter 1: Introduction to the case study
Statement of the problems
This case study is about the several problems which are occurring in OCBC Bank which
has resulted in last rank of the institution as per the study. This banking institution wants to
establish the merchant tie ups, in order to solve the complexities which are facing by the
management (ANG, CHEN, and DARENDELI, 2022). Moreover company is working in the
direction to stimulate the quality of experience for their existing customers and works in
increasing the satisfaction with the credit card services.
 Less motivated employees
 Cultural barriers
 Inadequate team management
 Low level of customer satisfaction and loyalty.
 Inability to maintain the good position in the market.
 Excess competition
 Inefficiency in presenting the product to the customer
 Difficulty in dealing with the dynamic business environment.
 Planning of merchant tie ups
Research Aims
The aim of this research is to identify the reasons due to which company is lacking in
providing the better card facilities to its consumers and not able to handle the competition in the
credit card market (Awadh, 2022)(Bataev, Koroleva, and Gorovoy, 2019). It will also include
the idea of merchant tie ups and different ways in which it can support the growth of OCBC
Bank and helps the customer to get embrace the good experience.

Research Objectives
The aim of this research is to perform the better evaluation regarding the problems which
has been discussed above and identify the ways through which OCBC bank can modify its
banking functions so that it can achieve the desired goals and can hold their customers for the
longer period of time (Ziegler, 2021).
Research Questions
Following are the questions which has arose after reading this case study-
 What could be the reasons due to which company has ranked last in the credit card
market?
 How merchant tie ups will help the company?
 What will be the different ways through which company can secure its position and
provide optimum satisfaction to the customers.
Report Structure
This given report is following the framework which has been started with an introduction
which is followed by a brief elaboration of the case study with the help of SWOT analysis and
Porter's 5 forces (Chen, Azmi, and Rahman, 2022). In addition to this, it has explained the
specific problems which along with its plan of analysis that will help in discovering the solution
for all the problems of OCBC Bank. In last it has a recommendation for the smooth functioning
of the financial institution.
Chapter 2: Case Brief
OCBC bank is working in very mass network, almost 570 branches of this institution has
been established in more than 18 countries (Wu, 2020). It gives a sufficient chance to the bank
by which management can achieve the prosperity in the market place. Along with the
functioning of the bank is associated with many big corporations with which company is
promoting the message of sustainability among their customer group. The biggest drawback of
OCBC bank is that it is not able to serve the customers as the one of the most famous bank.
Organisation is lacking behind in maintaining the enough cash flow inside the management
which is making it tough to cover some future planning.

By having the medium level of growth possibilities, OCBC bank can focus on its working
and service structure to present the product for the customers in the market. Furthermore,
management must focus on spreading the working of the business to the international market to
increase the global presence. This banking firm can work in utilizing the new technology, so that
there will be least cost and complexities in performing the task (Guild, 2020). Presence of global
rivalry which is continuously challenging the business strategy of the OCBC bank. And the
presence of the bank in different countries may lead to the severe financial issue due to the
inflexible rates of currencies.
Porter's 5 forces
 Threat of new entrants- In the banking sector, the entry chances of new institution is
very less, because of the difficulty in attaining the competitive advantage. Also the
investment which is require in this industry to start the business is high which reduces the
power of new emerging financial institution in the market (Wong, 2019).
 Bargaining power of the suppliers- OCBC bank has large quantity of suppliers in this
industry, so if management is finding it difficult to deal in the market then they can
switch to another one. If any supplier wants to earn the minimal amount of profit in the
market then it is important to go along with the demand of the buyer i.e., OCBC bank. In
this way the controlling power of supplier in this industry is low.
 Bargaining power of buyers- The negotiation power of the buyer in this industry is
quite less as consumers in this market make regular purchase, so they can not
compromise with the quality. Product differentiation is another important aspect of this
industry as it reduces the possibilities for the consumer to find out the particular product.
 Threat of substitute services- The availability of the customers in the banking sector is
low. And if there is any substitute present for the product which is offered by OCBC
bank then that will not be in the set budget of the customers. So, this elements of the
model is not much effective in the banking industry.
 Threat of competitors- OCBC has few rivals in this industry but they have tremendous
market share, and this enough to affect the success of the bank. Company must be aware

about the practising of these competitors and start concentrating on building some
efficient service structure for the customers (Gupta, and Xia, 2018).
Chapter 3: Problems Statements and Plan of Analysis
Problem 1
Herzberg motivation hygiene theory states that there are numbers of elements which are
present at work place and these are responsible for providing both satisfaction and dissatisfaction
to the employees who are working within the firm. These components may relate with the type
of job role which is assigned to an individual. In OCBC bank, this theory helps in solving the
problem of diminished motivation level among the employees which could result in low
performance of the organisation as well. In this situation employees are able to give their best by
involving some creativity and innovation in completion of the task which is being allotted to
them by the management of the banking institution.
Problem 2
Hofstede’s cultural dimensions’ theory describe the complex areas of the business which
shows the distinct features of cultural values followed by all the nations. This model includes 6
different factors which depicts the how one nations can vary from other one in various aspects or
attributes (Warrier, and Prasad, 2018). In the light of this model, OCBC bank is able to tackle the
cultural issues prevailing in the organisation. Due to this bank may face the conflicts among the
employees, which could result in lack of understanding and least productivity of the
organisation.
Problem 3
The model of HR value chain shows the positive side of human resource manager
activities which he has performed to attain the desirable organisational goal. It explains the
connection of between the functions which are performed by the human resource manager in the
firm to ensure the efficiency in all the departments. Team management is one of the major
concern of the OCBC bank and this problem could be arise because of the improper contribution
of workforce manager to handle the departments of the company. Poor working of the manager
towards the upliftment of the functional area is the main reason OCBC banks inefficient
working.

Problem 4
The CAGE distance framework helps in discovering the several crucial distinct factors of
the countries which is being considered by the firm while making some relevant plan of action. It
includes factors like cultural, administrative, geographical and economical which is necessary to
formulate the better marketing strategy (Halim, 2019). This model will help OCBC bank in
constructing such policies for their functioning which will suits all the demands and
requirements of the people who are living in the different countries. Banks will identify the
trends in the banking sector of the various nations and formulate the plans accordingly.
Problem 5
The marketing mix communication is the combination of different marketing tools which
could be used in the organisation to ensure the better marketing of the product. It helps in
reaching the mass audience, in order to inform them about the offerings of the business in the
best possible way. OCBC bank should consider this model in its operation as it will allow in
creating the awareness among the customers in respect to new services which is being
introduced. It will also support in maintaining the proper balance among the various factors of
the marketing mix of the OCBC bank (Sugawara, and Nishimura, 2020).
Problem 6
When an employee or worker of the firm gets the proper recognition and
acknowledgement for the task which he has performed in the firm. He feels encouraged and
motivated for his future working, this situation is being explained by the expectancy theory. In
order to present the efficient marketing in OCBC bank, it is necessary to give appraisal to the
employees as this will support in improving their working capability and they will become more
open towards their duties which have been assigned to them by the higher authority. OCBC
banks should encourage its workforce as they are are only source through which company can
achieve the success and preserve its competitiveness in the market.
Problem 7
In order to upgrade the effectiveness of market planning and its uses in the company,
utilisation SOSTAC model is very important (SAPUTRA, 2022). It works with the help of six
precise phase- situation analysis, objectives, strategy, tactics, actions and control. This model

basically promotes the inclusion of digital marketing in any kind of business industry. If OCBC
fails to develop good marketing plan, then it will result in low growth of the company's services
among the customers. It will also reduce the reputable image of the company due to failure of
OCBC bank in handling its offered services.
Problem 8
The complexity theory concentrates on finding it some loops and elements which may
affect the working of the business. It supports in identifying the reviews of the customers and
conduct some changes in the working of the business. OCBC bank's inability to deal will the
outside environment has making it difficult to do the changes in the management. OCBC must
focus on reviewing these external factors which could impact the working of the firm in
numerous ways (Hardiansyah, Rony, and Soehardi, 2019). By considering this model OCBC
bank is able to highlight the areas that may requires some changes to assure the better activity of
the company.
Problem 9
The porter's generic strategy is related to those elements with which company is able to
get the competitive advantage by performing some modification in the the strategic approach of
the business. By involving this model in the management company is able to discover the
establish the various methods through which it will become easy to make the innovation in the
service offerings of the OCBC bank. It assist in association of the business operation with some
new beneficial techniques. Through this financial institution can experience the growth in the
working of the business.
S/N Functional area of study The problem The theory use
1 Human resources Less motivated
employees
Herzberg motivation
hygiene theory
2 Strategy Cultural barriers Hofstede’s cultural
dimensions
3 Human resources Inadequate team The HR value chain

management
4 Marketing Low level of customer
satisfaction and loyalty
The CAGE distance
framework
5 Marketing Inability to maintain the
good position in the
market
Marketing mix
6 Operational area Excess competition The expectancy theory
7 Marketing Inefficiency in presenting
the product to the
customers
SOSTAC model
8 Technological changes Difficulty in dealing with
the dynamic business
environment
The complexity theory
9 Strategic Management Planning of merchant tie
ups
Porter’s generic strategy
Literature Review
When new changes in technology and some business proposals meet with each other, then
this combination definitely bring the most cost effective result in respect to the relevant business
model. There are numerous theories and statements has been given which derived that if one
business institution utilising all its technological aspects and theoretical concept in better way, it
will allow the business to earn that desirable success and profit in the long run (Mishra, and
Tripathi, 2020).
.
The idea of adjoining the operational activities of the business with the concept of
technology will support in finding the right way to do the task in the organisation. Emerging idea
of business establishment on the online platform will make it easy for the administration to think

about their policies and offering with the perspective of consumer and supplier as well. This will
result in identification of loop holes in the functioning of the business organisation (Wahyono,
2018).
Chapter 4: Analysis and Findings
Analysis-1
The first problem of OCBC which is related to the demotivated employee is highly found
in the sales department, the reason could be less remuneration or compensation due to which
employees are not making much efforts to complete the task on the given deadline. This can
create the low revenue structure of the company as the department is unable to accomplish the
set goals of the sales.
Analysis-2
The second problem of OCBC bank is about the lack of cultural values and respective
behaviour of the employees in almost every other section. This may lead to the poor
communication and disinterest of the colleagues in supporting each other. The reason of this
condition in the OCBC bank could be manager’s avoidance in acknowledging the importance of
each cultural beliefs and making policies in this regard (Howe, 2019).
Analysis-3
The third problem of the banking firm is about the lack of team spirit among the
employees which is continuously creating the chaotic environment and confusion to understand
the things which has been explained by the manager. The reason behind this situation is the
unhealthy competition which is influencing the working environment of OCBC bank. For this
company emphasis the more group task where each and every individual of the team is allow to
explain his or her thoughts on the given project.
Analysis-4
The fourth issue of OCBC bank is about the customer satisfaction or their loyalty towards
the services which organisation is offering to their customer base. This due to the improper
marketing in the company which is creating lots of issues for OCBC bank in informing
consumers about the card facilities (Prabhakar, 2019). People who belong from distinct cultural

dimension, have their own expectations and needs which company might be unable to fulfil in
the absence of complete information.
Analysis-5
The problem number fifth of OCBC bank is about the failure in establishing the good
reputation in the market. This is due to unavailability of right tool marketing by which company
is able to communicate with their target customers. This complexity is basically influencing the
efficiency of sales department as it is becoming tough for them to sell their credit cards in the
market.
Analysis-6
Presence of mass competition is sixth problem of OCBC bank, this is causing a major
decline in the revenue earning of the company and affecting its market share too. By examining
this issue of the organisation it has been observed that inability of company to introduce new
card framework among the customers is the reason of this problem (Ibrahim, 2018). OCBC bank
should concentrate on recovering this issue as it has potential to reduce the growth rate of the
company.
Analysis-7
The seventh problem with OCBC bank is improper market planning, due to which
company could not decide that how to refer the new offerings to the target customer. This
making inappropriate wastage of funds and resources in the business because company is not
able to utilise them correctly for the right segment of the customers.
Analysis-8
The eight problem is connected to the external environment of the business which is
continuously generating challenges for the business. Banking institution is unable to confront
these outside forces which is hampering the overall functioning of the different departments
(Özaslan, and Özaslan, 2022).
Analysis-9
The ninth problem of OCBC bank is reflecting the planning of new merchant business
link ups that can build some new beneficial ways through which management can raise the

profitability of the business. But company is not making any further steps to initiate this plan in
the banking industry.
Chapter 5: Proposed Solutions to Problems
Solution-1
To solve this issue company can build various rewards and compensation programs in
which each employees can show his or her skills which supports in the betterment of OCBC
bank (Oxford Analytica, 2018). And for this company should acknowledge them by giving them
some monetary rewards or some other benefits.
Solution-2
For this company start focusing on working in team and develop more communication
among the subordinate so that they get aware about each other cultural values (Kim, 2018)(Kim,
and Lee, 2020). It will give an opportunity to giving equal importance to the values and ethics to
the colleagues in OCBC bank.
Solution-3
The leader of OCBC bank should make all efforts in bring team spirit among the
employees. It creates the helping and supportive environment and will reduce the conflicts,
negativity in the business organisation.
Solution-4
Improvement in services which currently provided by OCBC bank is required, in order to
solve this issue. Along with organisation can consider the innovative policies with attractive
interest to capture the attention of the customers in the market.
Solution-5
OCBC bank must examine the existing working guidelines of the company and if require
then should create some modification. There are so many changes has been seen in the banking
industry which are simplifying the overall practices.

Solution-6
The best method to tackle this issue is to observing the marketing strategy of the other
rivals and what kind of services they are planning to launch in upcoming time. This information
will help OCBC bank to alter their work structure too, through which management can confront
the competitive market.
Solution-7
Company should concentrate on hiring such individual for this department who are able
to construct better plan for the marketing of the new services and offerings. Along with giving
them proper training about the activities will also help in achieving the targets.
Solution-8
By analysing the outer forces OCBC bank can work in declining the impact on the
functioning of the management. It will also help in finding out the future trends of the banking
industry, through this bank will form their further strategies.
Solution-9
Last merchant tie ups is the profitable decision of the OCBC bank's manger as it will
ensure the future success of the business, And helps in establishing the good customer base by
accomplishing their needs and wants (Lam, and Xi, 2019).
Best Fit solution
For all the above issues which have been mentioned above the best strategy would be
merchant tie ups. Being banking institution it is necessary for OCBC bank to formulate such plan
of action in their operation that will support in the future growth of the management functioning.
So it will be best for OCBC bank to make sufficient investment of the planning and funds on the
implementation of this planning.
Recommendations
For the merchant tie ups, OCBC bank must guide its respective department to do proper
information collection that would be utilised in the successful execution. Along with the a proper
budget should be prepared and all the activities must be followed according to that only. This
will eliminate the impact of any risk which may be associated to this tie up (Long Nguyen, and
Megargel, 2022).

Action Plan
Preparing the list of all the local merchants who have enough amount of funds and financial
resources to support this particular objective of OCBC bank. Along with the benefits such as
rewards, cashback, etc. offered by them to attract the customers.
Limitations
Due to the time constraints there are so many extensive research which has not been
conducted in this report. And the given case study did not provide the complete information of
the OCBC bank which also make it difficult to provide a satisfactory idea through which relevant
solution could identify for all the existing complexities.
Scope for Research
This report is providing the potential solution for all the components which are holding
OCBC bank to grow in the market (Lim, and Parker, 2020). By applying the specific model on
the situation of the bank, this research helps in identifying the reasons of all these complexities.
This report has helped in discovering some key objects that may obstruct the activities of the
financial institution.

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