Handelsbanken: May 2002 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Handelsbanken: May 2002 Case Study Help

Recommendations

After thoroughly evaluating all the mentioned alternative expansion solutions on the basis of market trend, organizational structure and the cultural preference, it is recommended that expansion in the UK would be most viable option because of its associatedadvantages as compared to other countries. In UK, the bank had already established its six full-service branches, which would help the bank in order to gain the local experiences and identifying the customers needs. The staff was already happy with the “Our Way” system. Thus, there is no need to change the cultural aspects of the company. It would be easy for the gain company to attract the potential customers. The market was already saturated but because of overcharging and overpricing, the bank could generate ample profits by attracting potential customers. Most importantly, the trend of net interest income has represented an increasing trend, which is the main source of profits for the banks.

Reproducing the Corporate Culture

The UK expansion system has been selected because ample associatedbenefits. Currently, the organization was working on the basis of its “Our Way” system, where the corporate culture is totally decentralized, and the loan decisionshad bee made on the basis of local customers needs. Furthermore, the organization do not set its long-term financial plans, sales targets and credit exemption mechanism. The bank adopted the policy of keeping number of its employees small and used the profits to repurchase the shares for its staff members in order to keep them loyal and dedicated for the organization. In Britain, the hiring of staff was difficult because of saturated market(Denison, 1990).

It is recommended that for UK expansion, same procedure should be adopted because the bank had already established its market in the company. The degree of hierarchy of delegation should be same such as the “Arrow” system. The reginal and branch manger would be responsible for the organizational developments and the financial returns. The management control system should be decentralized, and it should empowerits employees in order to make profitable loan decisions but with the responsibility for the financial results. The employees should be treated as the core component of the organization because they are directly concerned with the end customers. The hired staff should be provided with an extensive training of 2 weeks and should be accounted for a six months’ probation period. The loan decisions should be made on the basis of customer’s financialaspects and background history. In addition to this, the bank should develop a competitive environment for employees by setting sales targets.

Conclusion

It is concluded that PärBoman had proposed three options for aboard expansion. After thoroughly evaluating all the mentioned alternative expansion solutions it is recommended that expansion in the UK would be most viable option because of its associated advantages as compared to other countries. Currently, the organization was working on the basis of its “Our Way” system, where the corporate culture is totally decentralized. It is recommended that for UK expansion, same procedure should be adopted. In addition to this, the bank should develop a competitive environment for employees by setting sales targets...............................

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