Royal Bank of Canada in Thailand Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Detail recommendation for senior management recommending to stay in the country or to leave the country

The ultimate goal of RCB was to gain a complete branch license to function in Thailand due to the advantage from the opportunities identified by those in wide variety of proficiency, particularly in energy, telecom, trade financing and mining. They realized that their clients could expect top financial results to help them in achieving their overall business goals from financial perspective. From this perspective they must stay in country and try their best to penetrate in industries and markets to help them in their reformation. Thailand is mainly focused by tourist across the globe and their economy is also based on tourism so Royal Bank of Canada can grab the advantage by introducing the online money transfer facilities for tourists. Moreover, the arrivals of tourist would help the Thailand Government in order to enhance the further opportunities in telecom, rail & air ways segments, which can give tremendous benefits to Royal Bank of Canada in establishing themselves in Thailand from investment banking perspective.

To accomplish the ultimate goal that was to gain a full branch license to operate in Thailand, they must show their support to the industries of Thailand. Royal Bank of Canada must design a policy of introducing the funding options for companies at low level pricing. Royal Bank of Canada must enhance and highlight the reasonable offerings that would reflect that it is experienced in satisfying the customer’s needs and wants. Royal Bank of Canada must support the exports of Thailand through their vast network across the globe. They can introduce special policy for the exporters to enhance the exports of Thailand. Furthermore, they must also transfer the technological expertise to the employees and clients who belong to Thailand. Royal Bank of Canada must capitalize its credit ranking by engaging the clients across the world so ignoring the Thailand may not work in this regard. Since, there is high uncertainty in Thailand so they must progress in slow manner as well as incorporate limited staff and must try their best to hire the local talent that should be headed by an experienced member from Royal Bank of Canada. These must align their policy and be as flexible as they can so as to gain the trust of the client. Thailand Government is now trying their best to overcome the issues for example in during 1984 to 1990, the GDP growth rate of Thailand averaged at 11% annually, which actually made it the fastest growing economy across the globe.

Royal Bank of Canada must also focus on a fact that during 1990 to 1995, the yearly growth rate averaged approximately 8% that was a great sign for the economy and overall stability. Inflation averaged 5% in recent years which highlighted an inspiring opportunity for Royal Bank of Canada to work on. Although, the political un-stability is a big issue for Thailand but it can be ignored at this level because of some exceptional progress in the economic elements like GDP, Inflation and overall growth. With the help of International Monetary Fund’s package of $16.7 billion, the Thailand Government will succeed in restoring the economic development in the country, which they had enjoyed in mid 1980s. The best thing for Royal Bank of Canada was that this bailout package would help the Thai Government in the proper re-establishment of the budgetary control and the optimistic reformation of the country’s shaky and corrupt financial system, which would result in growth of industries and the country’s overall economy that would go in favor of the RBC. So it is recommended that Royal Bank of Canada must stay in this country and grab the advantages from its economic reforms.

Major Insights

The case is quiet self-explanatory and it highlights Thailand’s over economic condition. It further highlights the steps that are being taken by the Thailand Government to overcome some serious economic issues; which include a huge bailout package of $16.7 billion from IMF to the Government of Thailand. Thailand’s economy is mostly based on tourism, which reflects an extremely positive image of Thailand but they are facing some political issues that hurt their aims of building a healthy economy. Thailand has a land area of 514,000 kilometers that consist of 76 provinces...........................................

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