Banco do Brazil, from Brazil to the world Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Banco do Brazil, from Brazil to the world Case Study Solution

Introduction:

Banco Do Brazil, is one of the finest financial that is operating in Brazil. The bank has portrayed impressive financial performance, in promoting the developmental ventures throughout the world. The bank works on the principle of social development, comprising of public policies. The policies are made by making in mind clarity about demands of the society. The bank is controlled by the Brazilian government. The bank core feature is of lending of all the kinds i.e. medium, short term and long term lending. The asset management and the foreign exchange services, are also provided by the bank. Moreover, the insurance, consortiums and investment funds and other financial services, are also provided by the bank. Almost 96% of the operations of the bank, are related to the main banking business, other 4% constitutes to other services. The bank has an operation in many regions and countries, such as North America, Europe, Asia and Africa. The main headquarter of the bank is situated in Brasilia, Brazil. The asset base of the bank, is largest among Latin American banks.

Discussion aspects:

Bank is a pioneer in doing the international expansion, many followers followed the trend, such as China and Russia. The bank has undertaken many international objectives and projects. Plus it is still seeking the positive growth plans, to emergent market abroad. The executives are considering the major opportunities that the bank would be able to get, while making foreign direct investments.The executives are also concerned about taking this decision, because they want to prosper in the domestic economy as well.

The bank executives are looking into this matter.By exploring the facts that, would make them take decisions,on further expansion abroad or providing efficient services.By fulfilling needs of all domestic customers, without any expansion or both. The extent to which the bank might move to the foreign market, also the reasons and the difficulties that the bank would face in the process.The countries where they might get opportunities to expand and get the maximum competitive advantage.

SWOT analysis of the bank:

To analyze the performance of the bank.Also, to explore the opportunities that, the bank could get by expanding internationally:

Strengths:

The bank main strength lies in retail banking, the number of employees that are associated with retail banking are almost 120,000. They are efficient employees of the bank that have expertise in their respective fields. Other than that, the bank is third largest in the market, with respect to market share it possesses.

The return on asset average of the bank is high, as compared to the industry and the competitors. It is because of strong domestic and international ventures. The return on equity proportion is also high, in comparison to the industry average. The uniqueness of the bank, lies in its innovation in banking processes that would enable them to fetch the largest market share, as the BB has already one of the largest distribution networks throughout Brazil.

Weaknesses:

The main weakness of the bank is still its less presence in the local market, as compared to the other similar financial institutions operating internationally. BB has started this tradition of global expansion from the Brazilian banking market, but some of the competitors supersede them in that venture. This is the reason why bank is considering more opportunities for international expansion. Furthermore, the bank is operating in a very autonomous environment, also some quick decision making that has been done in the systematic environment. The executives lacks the ability for efficient decision making in those areas, where there is need to assess the matter in depth. The autonomy has taken the power of decision making from the experts.

Banco do Brazil, from Brazil to the world Harvard Case Solution & Analysis

Opportunities:

The bank has many opportunities in the banking sector and other related service sectors. Historically, the bank has availed many opportunities, for making secured investments in many places of the world. If the bank merges with the other potential banks, having capabilities and efficient business practices to meet the expansion criteria.There would be less investment capital required by the bank and less hustle to expand internationally. The employees that are already working in the respective countries can be involved in the operations, so that the experienced professionals can be hired. Effective partnership measures can also serve for the cause.

In talking about revenue growth, the bank should consider asset management division.The bank has previously obtained a maximum of the revenues from banking services, as an international expansion venture, asset management subsidiary can be focused to give special attention.To make efforts, to excel in such sector.

Furthermore, the bank has an impressive opportunity to grow in Latin America, in the faculty of investment banking. The demand for the investment banking is high in Latin America. Moreover, underwriting facilities can also be provided at such banks,so the bank envisioned to open in Latin America.

As the bank would prioritize the expansion eventually.There would be an extensive opportunity to grow, in emerging economies and developing countries as well.......................

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