Applying System Thinking to ICICI Bank's Business Challenges

This report employs system thinking to analyze the challenges faced by ICICI Bank, an Indian multinational banking organization. The bank has been experiencing customer attrition due to increased competition from other private and government-sponsored banks offering more attractive interest rates and services. The analysis utilizes the CATWOE framework (Customers, Actors, Transformation Process, Worldview, Owner, and Environmental Constraints) to understand the multifaceted nature of the problem. The report identifies the core issue as intense market competition leading to customer loss and suggests potential solutions such as enhancing employee motivation and offering more attractive customer incentives. The rich picture diagram visually represents the interconnected elements contributing to the bank's challenges, emphasizing the need for a holistic approach to address the issues and regain its market position. Desklib offers similar solved assignments and past papers for students.

Running head - SYSTEM THINKING
System Thinking
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Background of System Thinking
The main tactic that is used by companies for handling of problems regarding system
performances and enquiry that concentration on the system’s simple part is known as system
thinking (Sedarati & Baktash, 2017). System thinking or the system thinking management
enquiry is measured. It helps in understanding the numerous system, breaking them into
many distinct fundamentals (Duboz et al., 2018). The procedure of system thinking is used by
many kind of research area and is useful to several other instructive grounds of studies like –
technology, educational system, economics, and others.
Corresponding process is applied which using the application of system thinking as it
helps in continuing balance in the specific system. The emphasize processing indications to
the increase in the system thinking, which leads the system to crumpling (Defo & Kaur,
2017). The process of system thinking, the system behavior results in many reinforcing and
the balance of the process itself.
Analysis of the problem faced
The problem that is discussed in the organization is regarding the bank that have
branches across the borders (Parameswar, Dhir & Dhir, 2017). Industrial Credit and
Investment Corporation of India or better known as ICICI bank limited is a Indian
multinational organization of banking that provides service to the people like other
government sponsored banks in the country. It is the second largest bank in India in terms of
assets and market capitalism. There are various branches across India. The organization also
has their branches in the countries like Canada, parts of United Kingdom, Dubai, China and
many other countries (Gupta & Nath, 2017). They have been the leading bank in India for
two decades and have been acquired a good place in the market. They have also been able to
generate a huge amount of revenue form the market that as they have acquired many

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customers form their service. The organization have been able to make a good name in the
market and have a huge brand loyalty. The customers have been satisfied by the service that
have been provided by the bank. The excellent kind of service is responsible for the making a
huge impact on the customers as they have been able to provide utmost kind of facilities and
good amount of deals regarding banking aspect. The facilities and the variety of choices that
were available for the people that were offered by the bank have made the bank a preferable
choice for many people (Mittal, 2017). The bank have been able to produce excellent kind of
service and also after sale services that is enjoyed by the variety of customers at all over India
and other counties as well.
Although in the recent years, there have been many issues that have been raised
against the bank. From a survey that was conducted by the bank it was estimated that the
bank have been losing many of their customers’ to many of their competitors in the market.
In the recent years, there have been many competitions in the market that have raised possible
threat to the bank and their establishment. They have been trying their best to provide
comfortable amount of services to the various customers of the bank. They have been trying
to attract more customers towards them but have been failed in doing so. Thus, the
organization have been conducting thorough research in the market for analyzing the reason
of their customer loss. The results that have been seen after the analysis was quite predictable
(Weseni, Watson & Anteneh, 2015). The bank have been suffering from a competition that
was far more severe than they have though it to be. There have been many other private
banks in the recent market that have raised many alarming issues against ICICI bank. Banks
like HDFC, YES Bank, UBI, Bank of Baroda, Axis Bank, Indusind Bank, Bandhan bank, and
Standard Chartered are some of the private bank that are in competition with ICICI bank.
There are also many other government sponsored bank that are providing all the
facilities and services in the market that is harmful for ICICI bank, These banks are State

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Bank of India, Central Bank of India and Punjab National Bank. Some of the orthodox people
are reliable on these kind of government-sponsored banks as the think that the government
banks would be safe for holding their earnings. The other private banks are already producing
many necessary service for the customers by providing a much attractive interest than ICICI
bank and also along with other facilities. The bank have been taken up serious action for
stopping these kind of issues by providing an incentive plans for their employees. The bank is
also making efforts in changing the performance management of the bank so that the
employees would be more attentive towards attracting more customers for the bank. There is
also an effort in changing the leadership of the organization so that prominent leadership
would be helpful for the taking the bank back at its position again.
CATWOE
CATWOE is the tool used for understanding the system behavior of organizational
issues. The full form of CATWOE is – customers, actors, transformation process, world-
view, owner and environmental constraints (Fadhil et al., 2018).
Customers – They are the essential in the flow structure the business as they are one who
will use the business service. The customers of ICICI bank have been suffering from a
dilemma as they have been provided the same kind of service from different kind of bank in
the market. The other banks are providing a lot more interest for the customers to enjoy and
other bank related facilities (Sutton, 2018). Thus, from the customers point of perspective
they have pushed at the edge to change their brand loyalty.
Actors – This segment of the tool is used for understanding the people that are directly or
indirectly related to the problem that is faced by the organization. In this case, the apex
management level employees, employees at both higher and lower level and the customers

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are facing the problem. As customers are losing their faith in the bank, the bank is losing their
service which in turn is resulting in loss of revenue.
Transformation process – The process that is used by the organization for overcoming the
problem is by providing a better incentives for the employees so that they feel motivated to
work and bring in other customers to use the service of the bank.
World-View – The world-view segment is used for making seeing the problem in a wider
range and analyze the effects of the problem. Thus, the issue would be effecting the banks
revenue collection and making profit from the market.
Owner – This aspect of the tool is used for understanding the various stakeholders that are
involved form the issue. The stakeholders that are involved with the issue are customers and
the employees of the bank.
Environmental Constraints – The last aspect is used for understanding the various other
resources that is related with the issue. Budget, time resources and time constraints and other
aspects are a part of this segment (Milani, 2019).
Root Definition
From the analysis of the issue it could be estimated that main problem that is faced by
ICICI bank is that they are in a market that have many other banks to compete with. Thus,
they are suffering the loss of customers.
Solution
The solutions that could be recommended for ICICI bank is that they should make
more plans for their employee motivation and also offer other attractive offers for their
customers.

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Rich Picture
(Source – Author)

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