Strategic and Change Management at Santander Bank - A Report

This report provides a detailed analysis of Santander Bank's strategic and change management approaches. It begins with a company background, highlighting Santander's operations and market presence. The report explores the strategy planning process using William’s strategy management model and examines how the McKinsey 7S model is applied to manage strategic change, particularly in response to challenges like the COVID-19 crisis. Furthermore, it includes a PESTLE analysis, evaluating the political, economic, social, technological, environmental, and legal factors impacting the bank, and applies Porter's Five Forces model to assess the competitive landscape. The report also discusses Porter's generic strategies employed by Santander to maintain its competitive edge. The analysis covers various aspects of Santander's operations, including its digital banking initiatives, responses to the pandemic, and customer experience strategies.

Strategic and Change
management- Santander
Bank

Contents
EXECUTIVE SUMMARY.................................................................................................................................3
COMPANY BACKGROUND............................................................................................................................3
SECTION ONE...............................................................................................................................................4
1.1 About company activities..................................................................................................................4
Critically explore the strategy planning process using William’s strategy management model..............5
SECTION 2....................................................................................................................................................5
McKinsey strategy change model is being applied by your bank when dealing with strategic change.. .5
SECTION 3....................................................................................................................................................7
PESTLE analysis and Porters five forces model........................................................................................7
SECTION 4..................................................................................................................................................10
Porters generic strategy........................................................................................................................10
REFERENCES..............................................................................................................................................12

EXECUTIVE SUMMARY
A change management plan in business defines how an organisation will deal with topics
like distribution network modifications, stock levels, planning, and scope statement. The purpose
of developing a formal approach is to ensure that any adverse effects of transition are minimized.
To execute a change management plan successfully, participants must devise a strategy for
recognizing whenever an action is made, approving modifications, implementing changes, and
monitoring changes to verify they have had the intended effect. This report based on The Spanish
Santander Group's Santander Bank, originally Sovereign Bank, is a completely subsidiary
company. It is situated in Boston and serves the Northeastern United States as its primary
market. In this report consist of Mckinsey strategy, Porters five forces model, PESTLE analysis
and Porters generic strategy.
COMPANY BACKGROUND
Santander Bank, N.A. began as "Sovereign Bank," a commercial bank in Wyomissing,
Pennsylvania, on October 8, 1902. Textile employees were among the firm's first consumers.
Banking system, housing, business finance, treasury services, lines of credit, financial industry,
trust and financial advisory, and insurers are among the goods and services it provides. It has
$57.5 billion in savings, 650 consumer banking locations, and more than 2,000 ATMs, and
employees roughly 9,800 employees. Our aim at Santander Bank is to assist individuals and
businesses succeed. This holds true for our customers, neighborhoods, staff members, and
prospective teammates. With $89.5 billion in assets, Santander Bank, N.A., based in Boston, is
one of the country's major retail and commercial lenders. Massachusetts, New Jersey,
Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, and Delaware are home to the
Bank's nearly 9,200 workers and more over 3 million consumers. The Bank is a completely
affiliate of Banco Santander, S.A., a Madrid-based banking conglomerate with over 148 million
customers in the United States, Europe, and Latin America. Santander Holdings USA, Inc.,
Banco Santander's intermediary controlling corporation in the World, is in charge of it. Check
www.santanderbank.com for further details on Santander Bank.

SECTION ONE
1.1 About company activities
Santander is Europe's fourth largest bank, with around US$1.4 trillion in total assets under
administration as of 2017. (AUM). The bank has a total market capitalization of $69.9 billion
and is quoted on the Euro Stoxx 50 market index. For its Corporate and Commercial Banking
customers, Santander UK has began rolling out an inventive smart phone application created on
open digital banking. The app gives Santander UK customers a'single view' of their various
balance sheets and activity from several banks. The Cash Flow Manager software, created by
tomato pay1, an open banking fintech for small and medium-sized businesses, is also aimed to
expedite transactions with QR codes and streamline accounting. Cash Flow Management
consolidates all amounts and activities for a company's multiple bank accounts into one
convenient spot. Customers of Santander UK who are using the app can link and check their
bank information for up to 98 percent of their accounts. The programme analyses each
company's data to provide segmented insights about its expenditures, such as how employment
expenditure in a specific month compared to the average over a set period of time. Cash Flow
Manager analyses a company's future financial status by analyzing its transactions and providing
precise estimates.
As the quickly growing corona virus scenario has an extraordinary influence on both our
professional and personal life, Santander is making steps to make sure that we can continue to
deliver critical services to all of our clients while also improving the protection of our clients and
staff. Shorter branch hours were enforced at the start of the pandemic to limit the chance of
COVID-19 spreading. Banking is a necessary industry that serves a fundamental purpose for our
customers. They will extend our present branch hours on May 1st, after careful assessment of the
customer service experience and company requirement. Our clients will benefit from the
extended hours since they will have more freedom. To help minimise the transmission of the
coronavirus and lower the risk to both our patients and employees, we will continue following
social separation recommendations.

Critically explore the strategy planning process using William’s strategy management model
Manage and oversee the strategic creation, execution, and supervision of strategies, policy,
and procedures throughout Santander US and Santander Holdings Limited to execute the
Operational Risk Programme (risk evaluation, appetite for risk, and major risk signals, managing
change, and training). In furthermore, he is in charge of the Operational Risk Council and
Working Group's management, as well as the authoring of individual risk revisions and
administrative.
During the first year, they established a customer experience strategy for Santander's Credit
Card Portfolio (4.5 million+ cards), which resulted in a 12 percent reduction in grievances
(complaints v active accounts) and a considerable increase in public happiness during a period of
unparalleled expansion. Times to get new Santander credit cards were decreased by a median of
5 days throughout all registration methods, with notable success in the telephonic registration
route, which saw a 65 percent reduction in time to card.
SECTION 2
McKinsey strategy change model is being applied by your bank when dealing with strategic
change
The model provides a framework for examining and evaluating variations in an
organization's internal condition. It is built on seven fundamental aspects that define the
performance of an organisation and should be interconnected and coordinated to produce
complementary results. The covid-19 crisis will add to the banking service business model's pre-
crisis challenges, such as earnings stress and low revenue growth (cheap money and higher
investment), stricter restrictions (following the original economic meltdown), and competitive
pressures from financial institutions and modern electronic applicants. The third batch of
stimulus funds has begun to be distributed by the Inland Revenue Department (IRS). Whether
you've applied for a payout and the IRS has your Fund Transfer data, the first installments are
likely to be issued by the end of the day on Wednesday, March 17, 2021, depending on the info
we now have.

1. Obtaining a Bank Transfer from the IRS: Many clients will have their money deposited
directly into the accounts which was most previously used it for a tax payment or benefit
payments.
 To verify your account information, go to your Mobile Banking App or Internet Banking
services: Whenever you receive a Bank Transfer from the IRS, you can instantly check
whether you got your money using your Mobile Financial App or Net Banking.
 Set reminders: Register in Netbanking or install our Mobile Banking App1 to receive
notifications whenever money is transferred.
2. If the IRS has not had Fund Transfer information, cheques from the IRS are expected to be
delivered for the next several months, depending on the IRS's capability. Consumers receive
checks from Santander Bank can transfer or cash them in a range of methods.
 At a Santander ATM, transfer your inspection: Several Santander Bank ATMs in the
North have payment capabilities.

 Visit one of our locations and speak with a bank manager: In-branch servicing is still
accessible at Santander Banking institutions on a short term basis. Kindly locate their
location to track the quality of services offered, as well as operating hours. Although we
can help at their locations, we recommend that you use an ATM right now.
3. The IRS may send before bank card when they don't have their bank transfer information.
When a client receives a pre-paid debit card, they should do the following:
 By phoning 800-240-8100, you can register the pre-paid card, create a four-digit PIN, and
compare the number (TTY: 800-241-9100).
 The reverse of the card should be signed.
 eipcard.com is where you can register your card.
 Users using these credentials to retrieve and move money electronically to their personal
checking account while paying any money, purchase at retail places anywhere Visa is
recognized, and get cash from ATMs and cash back offers facilities at merchant outlets
once they've been activated.
 Santander does not offer cash advances at the teller line if they wish to withdraw cash
from their card.
Be wary of phishing: Hackers are reaping the benefits of the COVID-19 climate by ramping up
emails and online frauds, so be cautious. No one from Santander Bank or the Internal Revenue
Service will phone you to ask for private details.
SECTION 3
PESTLE analysis and Porters five forces model
PESTEL analysis is a strategic coordination and execution methodology that is broadly
employed. It is an abbreviation for the macro business ecosystem's political, economic, social,
technological, environmental, and legal concerns. Legislative measures, increased environmental
conservation, shared social tendencies, advances in technology, and a developing judicial
framework all contribute to Santander Bank's complex world.
Political: If a group does not handle the legal and political aspects of their approach, they will
struggle to attain success, high standing, and belief. For Santander, political and legal parts

involve the intention of the sector to follow the govt's established principles and regulation in
order to be classified as a legal and permitted business sector. In this case, the UK Banking
Sector, for example, should be capable of addressing political and legal issues in order to
demonstrate that they value the government's ideals and regulations in all of their business
activities.
Economical: It is critical that a certain component of the company pay close attention to its
financial health while dealing with Santander. The impact on macroeconomic of some trade acts
as an axis around which other targets rotate. The position to benefit considers the environment in
which business takes place, such as the structure of the breach of the peace where a part operates,
the overall financial condition of the area or district, the situation in relation to other businesses,
and the situation of the financial market. The global financial structure in the industry in issue,
whether that is a monopoly, an oligopoly, or anything close to a perfectly competitive market
structure.
Social: Society and tradition are also important components that should be prioritised by every
company, particularly those operating on a global scale like Santander. It is critical that the
section operates in accordance with community plans in order to achieve good standing and a
positive public persona. Heritage aspects, on the other side, are equally vital in aligning to
actualize the unique wishes of different people who belong to different cultures.
Technological: The complexity of achieving organisation success through improved performance
and profitability, combined with new contributions of speed knowledge, has strengthened the
perspective of both experts and business executives in the orientation of methodologies.
Legal: Corporations are expected by national rules to arrange valid employment contracts. These
agreements are approved by reputable government entities and cover all areas of employment.
Future employment agreements make sure that the people concerned have a good relationship
and that there are no misunderstandings or collusions. Santander Bank follows labour rules and
informs its employees about them during the hiring process. Santander Bank's Human resources
also holds courses and workshops sessions for workers on a regular basis to engage them and
educate them on worker protections and other legal requirements. Reputed organisations and
institutions conduct frequent audits of enterprises to ensure that safety nets, drills, and

preventative procedures are in place. Worker safety and health encompasses not just their
physical well-being, but also their mental and emotional health.
Environmental: A greater emphasis is being placed on environmental protection and recycling.
Increasing awareness of the need of composting and demand that things be thrown off in
environmentally friendly ways. Usage of recycled products is also becoming more popular
among consumers. Santander Bank, like many other businesses, has developed dedicated sites
for dumping of products to be recovered. It is also creating a new product portfolio of recyclable
materials for customers to advantage from the nation's stringent waste reporting and monitoring
legislation. Companies should affiliate with, and identify with, waste disposal organizations and
organizations in order to comply with legislation, maintain controls, and avoid potential
headaches. In order to ensure sustainable development, the company currently has a well-defined
and regulated wastewater treatment procedure in place, as well as a waste disposal system that is
ecologically sound.
Porter’s five forces model
Porter Five Forces can be used as a strategic management technique by Santander Bank (United
Kingdom) planners to conduct market research. It will aid Santander Bank planners in
visualizing the numerous competitive factors that exist in the financial sector, both in domestic
and overseas markets.
1. Buyers' negotiating power at Santander Bank and in the banking industry - When buyers have
a lot of negotiating power, their try to push prices down, restricting Santander Bank's ability to
produce economic profit.
2. Threat of new entrants in the Money Center Banks sector - Whether there's a significant new
entrants in the Financial Institution Banks market, present companies will be happy to accept
profitability in order to mitigate the threat of new entry.
3. Threat of replacement goods & services in the Money Center Banking sector - If the threat of
substitution and offerings is strong, Santander Bank must either invest consistently in R&D or
reduce the financial performance to competitors.

4. Competition among current players in the Money Center Banks market — When competition
is fierce, incumbent companies like Santander Bank find it difficult to make long-term profits.
5. Supplier bargaining power in Money Center Banks - Whenever customers have a lot of
bargaining power, they can get a better deal from Santander Bank. It will affect Santander Bank's
tendency to preserve above-average profitability in the Money Center Financial sector.
The Porter Five Forces model can be used by managers to assess Santander Bank's performance
in the Financial Institution Banks market. Santander Bank's Porter five forces assessment will aid
in comprehending and addressing the kind and intensity of play, as well as how Santander Bank
can deal with it. Even though many businesses appear to be very various externally, whenever
these five forces are examined closely, they identify the determinants of success in each sector.
(Strategists can use Porter Five Forces to figure out what drives Santander Bank's profitability in
the Money Center Banks market.) The primary goal of Santander Bank's analysts and managers
is to assist the company in gaining a long - term competitive advantages and fending off
competitive pressures from other Money Center Banks.
SECTION 4
Porters generic strategy
Porter's Generic Strategies Model explains how a corporation can position itself depending on its
competitive edge and service breadth. It provides firms with three generic alternatives for
identifying and distinguishing their core competencies:
1. Means of cost effectiveness to be capable of offering the lowest pricing, which are often
accompanied by "no frills" service. New technology, efficient operations, and a low cost base
can all contribute to cost efficiency, which can be aided by economies of scale. This method
necessitates that businesses continually enhance their efficiency and cut costs. Santander is one
of the world's largest retail banks, with one of the lowest cost-to-income ratios. A strong cost-
cutting culture, a constant focus on innovation and digitization, a high degree of standardization,
simple goods and procedures, and a goal of top-3 rankings in its home markets with close
customer ties all contributed to their success.

Despite the severe economic circumstances in which banks have recently found themselves,
Santander's effectiveness of risk following points are a different strategy adopted by this
corporation to distinguish itself from its competition. Also, Santander's image is distinct in terms
of what they have accomplished over the years. Whenever Santander bought Abbey's bank in
2004, for example, the investments and reversal or transformation given in the company was
extremely effective and highly effective. With a massive expense ratio, Santander may be one of
the most effective banks around the world. Nonetheless, the retail and commercial bank sector's
attitude and business model are distinct in that all branches adhere to the same regulatory
framework.
Organizations can best exploit their competitive advantage and so remain competitive if they
have a clear position in one of these areas.
The issue is that most banks are stuck in the middle, unable to take a firm stance. Most banks
aim to serve a wide range of consumers by offering a diverse range of products and services. At
the same time, they want to stand out by providing better service and innovative ideas, but they
struggle to improve their offering on a regular basis and lack customer-centric processes. As a
result, they lose position to cost-leaders who offer lower pricing, cede ground to true
differentiators who provide superior service, and are beaten by specialists who are experts in
their field.
Banks must examine their distinctive attributes that fuel their competitive advantage, as well as
determine where they are now positioned, in order to turn the ship around.

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