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the first wave of Maybank that aim to create momentum of consumer, enterprise,
investment, Islamic banking, insurance, international business,operations and human
capital development. Wave II is the converging aspirations by synergies between
companies. Company need to change new management skill to support this
transformation journey. Wave II 2010-2015 aim to expand regional businesses on
Malaysia,Singapore and Indonesia. Another activity is focus on managing
information technology. Improving operational delivery of current and future
IT services, finding the solution to improve the ability to align banks IT
strategy, reduce cost, improved level of consistency, quality and flexibility in
service delivery, looking for innovation, global knowledge and process
expertise. Dividend Reinvestment Plan (DRP) also is a part of Maybanks
activities. DRP tends to conserve and manage its capital. RDP enables
Maybank declare dividends to shareholders either receive the dividend in
cash or reinvest the dividend into new Maybank shares. The reinvestment in
new Maybank shares will increase the value of shareholders as the shares are
issued at a discount of up to 10%. This will help Maybank to remain a portion
of its capital and the capital become Maybanks dividends.
SPACE matrix
Strategic Position & Action Evaluation (SPACE) Matrix is another management tool used
t o h e l p a n a l yz e a c o m p a n y. I t c a n a l s o u s e d t o d e t e r m i n e w h a t s o r t
o f s t r a t e g y t h e company should undertake. The SPACE Matrix is broken
down into four quadrants as being aggressive, conservative, defensive, and
competitive. Additionally, the SPACE Matrix analysis functions upon two
internal strategic dimensions which are financial strength (FS) and competitive
advantage (CA). Besides, the SPACE Matrix methodology also studies two business
external strategic dimensions such as environmental stability (ES) and industry strength
(IS). The CA (values from -1 to -6) and IS (values from +1 to+6) are representing by the
X-axis of the Cartesian graph whereas the FS (values from +1to +6) and ES (values
from -1 to -6) are representing by Y-axis. After drawing these SPACE matrix
graph, the overall strategic positioning of a company can be determined.
Aggressive Position
There are numerous tactics fall into the aggressive strategy category. One of the strategies
is market development. As stated above, we can note that Maybank is biggest
bank in Malaysia and has 361 local branches and 88 branches in overseas. However,
Maybank is not located in every area of Malaysia. Therefore, it should try to expand their
branches into new geographical areas or markets.Besides, Maybank should
also aggressively find ways to grow its business overseas such as Thailand,
Pakistan and middle-east.This objective can be attained through mergers and
acquisitions (M&A).
B e s i d e s , M a y b a n k s h o u l d c a r r y o u t t h e market penetration strategy. The
management of Maybank can think o u t t h e b e s t w a y t o s u s t a i n a n d
c o m p e t e i n e x i s t market as well as new market. This method would be hire
high level employees fromthe competitors strong in those areas.
Moreover, Maybank should focus on doing more market research . Many clients are
attracted to the company who is doing strong research. Therefore, Maybank should do
research to investigate customers discontent. Then, the company can improve
their service and product quality through customers suggestion. In addition
to that, market research can show the demand in different areas. Thus, the
company will be success in every area by determining the demand boundaries.
Other than that, Maybank need to implement a strategy on product development .The
management should aim on offering new services such as helping their customersor
corporations manage interest rate and currency risks. By doing this, the Maybank can
move forward to obtain bigger slice of investment banking.
VRIO ANALYSIS
Maybank perspectives their performance relative to industry peers is likely to vary
according to the level to which resources, capabilities, and ultimately core competencies
satisfy VRIO criteria. Arshad et al. (2012) have explored the four criteria as follows:
Valuable
A resource or capability is said to be valuable if it allows the firm to exploit opportunities
or negate threats in the environment. Maybank can be said as the first mover in the
internet or online banking in Malaysian financial sector. This can lead to develop valuable
advantage to attract large number of subscribers to the service. The technical expertise on
internet or online banking facilitate Maybank to reach wide clienteles, particularly white
colour clients who prefer to conduct desk banking than the traditional method.
Maybanks wide networks, both local and also global reach, made it convenient for its
clients to conduct businesses and transactions across nations. Strong financial resources
coupled with GLC status provide advantages to the Maybank to tap deposits from
Organized
The firm must likewise have the organizational capability to exploit the resources. Being
government linked company, Maybank enjoys some advantage in term of government
deposits and other credit portfolios. Within its stable, Maybank is a model of being one
stop financial centre providing full range of financial services.
REFERENCES
Arshad, D., Ahmad, H., Mustapa, A.N., and Mohtar, S. (2012). Strategic Change and
Transformation: A Case Study at Malayan Banking Berhad, Proceedings of The 3rd
International Conference on Technology and Operations Management: Sustaining
Competitiveness through Green Technology Management, BandungIndonesia (July 46), pp.143-148. ISBN: 978-979-15458-4-6.
High
Business
High
Low
STARS
QUESTION MARK
Deposits
Fixed Deposit
Personel Loan
Saving Account
Growth
Rate
Low
CASH COW
DOG
Lending
Insurances
Leasing
Mortgage
Investment Banking
business units. It is organizes business by two dimension, the business growth rate and
market share. The growth rate is use to show how rapidly the entire industry is increasing
and the market share is whether a business unit has a larger or smaller share than its
competitors. The combination of market share and business growth rate have provides
four categories to determine the SBUs within a corporate portfolio. The four categories of
BCG are stars, question marks, cash cows and dogs.
STARS. The stars have a large market share in the rapidly growing industry and it is
important because it has an additional growth potential and profits should be reinvested
for future growth and profits. It will produce a positive cash flow as industry matures and
market growth slows. Star need to use large amount of fund and are the leaders in the
business so they should also generate large amount of fund. Star may generate fund but
because the market is grow rapidly, the star require investment to maintain the lead. If
successful, a star will become a cash cow when its industry matures. The stars in
Maybank are personal loan and saving account. Personal loan is consider as star
because it give loans to customers when they are desire to pay childs higher education
fee or marriage related expenses or want to buy a house and the interest rate is lower
compare to the financial company. A saving account is a account that maintain by retail
financial institutions that pay interest but cannot be used directly as money but can used
by writing a cheque. The saving account lets the customer set aside a portion of their
liquid assets while earning a monetary return. The saving account is attracting the
customer and consider as a star because it have certain profit and low interest.
QUESTION MARKS. Also known as problem children. The question mark is new in a
rapidly growing industry but only has a small market share. Question mark have the
worst cash characteristic of all, because high demands and low return due to low market
share. If nothing is done to change the market share, question marks will generate great
amount of cash but when the growth stops, it will become a dogs. Question mark is risky
and uncertain because it could become a star or it could fail. The question marks in