Tutorial 3

1) Money is a commodity. As a borrower and lender of this commodity, what

strategies can a Maldivian bank use to differentiate its services from those of
its competitors?
Well, actually, by definition, money is a commodity. It was developed to
combat the inability to trade unlike skill sets or goods in barter. But the idea
that money is a commodity and can go up in value or down in value .
Strategies that Maldivian bank can use to differentiate its services from those
of its competitors are,
1. Quickly embrace technology that adds value: This is of extreme importance
if your long-term business growth requires attracting millennials whose
habits rely more on clicks than bricks. The technology that allows us to
deposit checks by taking a picture of the check on our phone has been
around for about 5 years. It is critical for bank executives to consider data
from activities across all channels and interactions. Whether it is data
from customers mobile phones, tablets, ATMs, their online banking or call
center interactions, or experiences at the branch, banks must create a
unified vision of data across their organization. Its only when banks can
leverage this customer data and gain insights from it that they can begin
to understand customers wants and needs, and offer meaningful
products and value-added banking services.
2. Do your products reflect your customer wants? Bank customers arent
accounts or dollars and cents; theyre people with needs and concerns. By
truly understanding their needs and crafting your products and services in
ways that uniquely meet these needs, you will gain enthusiastic
customers (fans) and differentiate from your competitors
3. Is your staff adding value for your customers? With the volume of traffic
decreasing in branches due to the shift of banking transactions to home
computers and mobile devices, many banks have responded by cutting
customer facing tellers. Some progressive banks are moving to teller cash
recyclers, machines that accelerate the transaction speed and free staff
to act as customer service representatives (CSRs) able to engage in a
deeper discussion with customers about their banking needs
3) Does every organization have a strategy? Explain.
Strategy generally involves setting goals, determining actions to achieve the
goals, and mobilizing resources to execute the actions. A strategy describes
how the ends (goals) will be achieved by the means (resources).

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Without a strategy an existing business can drift away from its customers
and become uncompetitive within its environment and eventually stops
making profit. Therefore having a strategy is a way to remain competitive.
Most small businesses have a strategy in the form of a business plan; this is
usually a standard document generated to convince either an advisor or a
bank. The UK governments business advice recommends at least some
SWOT analysis and financial forecasting within its business plan template.
This type of strategic business plan is then used to secure funding from the
stakeholders.
More recently, strategic tools are being used in the creation of vision and
mission statements; to be communicated to the stakeholders. These have a
number of uses: Firstly, to help sell the idea of the company to its investors
to secure resources for expansion. Secondly, the move to culture based
management; where the organization rely on its culture to inform the
employees choices, enabling them to make the correct decisions at all levels
without strict supervision
4) What is the relationship between the strategy of an organization and the
investments that it makes in various aspects of its operations?
Leadership and management in all organizations face the problem of
choosing among alternatives, and thinking strategically about their
companys present circumstances and future prospects. As business
environments become increasingly complex and continuously changing at
very fast pace, the strategic management process is applied by most
organizations to make the internal and external environments more
manageable. While a companys business model is not the same as its
strategy, closely related to the concept of strategy is the concept of the
companys business model. A companys business model relates to how and
why a companys product and offerings can generate attractive revenues
and still create value for the customers. Business models convert new
innovation to economic value for the firm and the customer. Crafting strategy
sets the course, direction, objectives and performance capabilities for
implementing and actualizing a chosen strategic outcome. An organization
formulates a strategy to establish a difference in the market and to out
perform rivals. Both strategy and business model are articulated through a
strong vision. Strategic vision is the first step in formulating and
implementing strategy. A companys strategic vision provides the logical
reason for future plans and directions of the company, and aims the
organization in a particular direction, providing a strategic direction for the
organization to follow in the aspirations of shareholders in the long run. A
vision is not in the present, a vision is where you will be in the future. An
organizations strategy recognizes where the company is today, and should

Tutorial 3
incorporate the actions necessary to move the company forward towards the
realization of its vision.