Case Study Marketing
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Executive Summary
This report is all about Anglo Irish Bank and Strategic Planning of it, and report begin with the introduction of Anglo Irish Bank.
The second part includes the external environment which affects Anglo Irish Bank. The next part is about active Business plan and strategies of Anglo Irish Bank. Also a opinion for strategic planning like employees responsibilities, responsibilities of managers and board of directors, stakeholders interest etc.
The next part is a heart of report which saws building of strategic plan for Anglo Irish Bank check the factors which affect strategic plan and the planning for implementation which involve vision, mission, timing, innovation, stakeholder, value added, survival, growth, leadership etc.
The last part include the conclusion from whole and come to the point that the whether objective is clear or not and to make it clear which factors helped and then it ends with the recommendations, references and bibliography.
Introduction:
Anglo Irish Bank is based in Ireland and its head office is based in Dublin. It merged with Irish nationwide Building Society. It is commercial banking business and its retail presence in Australia, Switzerland, UK, USA and the Isle of Man.
In 2008 because of heavy exposure to property lending, Irish market affected badly and it went enormously down. The Dublin and London Stock Exchanges immediately suspended trading in Anglo Irishs shares, with the final closing share price of 0.22 euro representing a fall of over 98% from its peak
There were loads of controversies arise since the nationalization of Anglo Irish Bank. And Anglos total lose of 2009 was 12.7 billion euro. It was the worse loss reported by Anglo Irish Bank.
Here it is necessary to understand the reasons of bankruptcy via analysis of environment factor.
The External Environment
PESTLE ANALYSIS
The pestle analysis followed by Political, Economic, Social, Technological, Environment and Legal. This is requiring understanding which external elements affected to bankruptcy for Anglo Irish Bank.
3.1.1
Political:
There was main element which affected that was hidden loan controversy in 2008; the chairman of Anglo Irish Bank himself accepted that he was responsible to hide £ 87 million from the bank. So government announced bank into state ownership and it come under the Irish law and all shares were transfer to finance minister and again it re- register as s private limited company. (
3.1.2
Economic:
Because of so many reasons economy were down at that time, such as a recession, down share market and thus whole economy were fell down. GBP fell down by 5% and commercial property continued fall to 2010. (
3.1.3
Social:
Ireland is recently facing problem with economy and their economy is that much fell down that in market people are loosing jobs, cost cutting, business loss, savings for senior citizens etc. (
3.1.4
Technology:
In banking field technology was not that much develop which can take control on bankruptcy or it monitor on the situation which create economy fell down.
3.1.5
Environment:
The bank understood that its their responsibility towards environment and that is the reason their aim was to minimize their carbon footprint.
3.1.6
Legal:
The bank has a huge commercial business, there is a entrepreneurs i.e.SEAN QUINN GROUP BARRY O CALLAGHAN of EMPG, which is known as loans to directors scandal. Its criminal law. (
Existing Business Plan and Strategic Plan and strategies of Anglo Irish Bank:
For whole restructure plan, the responsibility was given to European Commission. In the board of meeting they all come to the point that they have to communicate with finance minister and then after word with finance minister, there were some evaluated strategic option.
A liquidation of the entire bank for 12 months.
A wind down of the bank for 10 months.
Porters Five Force Model:
4.1.1 Competitive Rivalry:
There is tuff competition for Anglo Irish bank in Ireland as Allied Irish bank, Bank of Ireland, and HSBC such bank has good control in European market. Recently competitive Rivalry is high because of top competitors.
4.1.2
Potential Entrance:
For new comers it will be a long process to entry and to make repo as Anglo Irish Bank has already presence in market from such a long time.
4.1.3 Suppliers:
Because of such controversy bank is not in position to grow the business or make profit so bargain power from suppliers will b medium.
4.1.4 Buyers:
The customers are the buyers and bank is not in position to gain customers trust and to fulfil their expectation so they cant make new customers. So bargain power will be low here.
4.1.5 Substitutes:
The threat of substitution will be high as if customers are not happy with service and product they can go for the best options or alternative.
Options for Strategic Planning For Anglo Irish Bank.
Anglo Irish bank is having presence in European market as well as another market and its main business is commercial banking. Here is some options for strategic planning. ANSOFF Matrix will help to understand the different options for the same.
Ansoff Matrix for Anglo Irish Bank.
Ansoff matrix