Sample Business Case Study Paper on Vancity Bank

Vancity Bank

1.

Vancity Bank is the most lucrative financial institution in the Canadian locale. The consolidation of the company occurred in 1945, and to date, the company has about 2500 employees, $13 billion in assets, and approximately 350000 customers. Moreover, the owners of the company are the member customers. The firm earns revenue in various ways such as providing financial solutions that enhance the members’ wellbeing and availing trusted financial advice that is in line with members’ long-term needs (Vancity, 2013). In addition, the company translates insights into new opportunities for impact, provides banking facilities, and offers credit services to its clientele.

2.

Vancity Bank operates in the financial services industry. The company’s scope of services incorporate banking services, and the primary target of the organization is ensuring that the members benefit from its financial services (Vancity, 2013). More precisely, Vancity Bank offers financial advice and competitive products that are lucrative to its members. Moreover, the company avails conventional banking services such as credit and chequing accounts, loans and credit cards, and mutual funds. The Company operates in Canada, and it has branches in Metro Vancouver, The Fraser Valley, Squamish, and Victoria (Vancity, 2013).

3.

The company dominates the financial services industry in Canada, and it has a competitive advantage over other financial institutions in the country. Second, it would be difficult for new entrants to be successful in the Canadian financial services industry because Vancity Bank has a stable and loyal clientele (Rice, 2010). Third, the company has a very high bargaining power when it comes to buyers in the financial services industry. Fourth, Vancity Bank is an established financial institution, and this enables the company to have a high bargaining power with suppliers in the industry (Rice, 2010). Finally, the company faces a relatively minimal threat from its substitutes in the financial services industry.

4.

In the financial services field, the entity focuses on the provision of low-cost financial services to its clientele, and the company enables clients to access financial services online or via telephone services (Roy, 2011). Hence, the financial expense met by the customer is minimal. Secondly, the company also ensures that it addresses the matters of cost in particular industry segments (Roy, 2011). For example, in matters of banking Vancity provides sophisticated computer systems that are cost effective. Analyzing the differentiation, the company avails better products and services in the financial services industry, and it ensures that the members benefit in all its activities (Rice, 2010). Moreover, Vancity Bank also ensures that it offers better services and products in specific industry segments.

5.

The company’s support structures incorporate administrative and financial services, human resources, product and technological developments, and procurement services (Roy, 2011). However, the administrative and financial services and the product and technological developments are critical to the success of the firm’s strategy. The firm ensures that it provides viable financial services to all its clientele, and it guarantees the endowment of all the services that are available to members (Vancity, 2013). In terms of technology, Vancity Bank ensures that it offers online banking services and mobile banking. The company’s main activities encompass inbound and outbound logistics, operations, sales and marketing, and servicing structures (Roy, 2011). Central to the flourishing of Vancity is sales and marketing, and the servicing structures. For instance, Vancity bank offers services such as financial advice and credit to members.

6.

Vancity has an information system that incorporates the Customer Information File technology (CIF). The technology keeps track of the various types of businesses that a particular client possesses. When customers visit a branch and they give their card to the customer service representatives, the CIF searches all system records and it reveals the services applicable to the customer. Moreover, the system develops a profile of the complete consolidated relationship between the customer and the bank.

7.

The information system helps Vancity to support its critical value chain activities and hence achieve its strategy (Vancity, 2013). The information system enhances the technological development of the company, and this is a key component of value chain activities (Oz, 2008). More intently, the information system enhances the servicing structures of Vancity by providing custom-based customer service to all its clientele.

8.

The innovation-based model can be applicable in the implementation of Vancity’s information system. The model encompasses six stages including initiation, adoption, adaptation, acceptance, conforming to routines, and infusion (Oz, 2008). The analysis of organizational challenges occurs, and then the formulation of an IT based solution to the problem comes into play (Oz, 2008). The interlinking of organizational procedures with the technology occurs. Afterwards, the launching of the technology occurs and the management encourages the staff to embrace the technology (Oz, 2008). The technology then conforms to the organization’s culture and operations. Finally, the integration of the technology with the organizational activities becomes apparent.

9.

The potential intended for financial performance in Vancity incorporates higher consolidated net profits and members benefiting more from the company’s financial services. Nevertheless, the potential unintended for financial performance in Vancity encompasses lower revenues and dissatisfaction of members with the company’s financial services (Roy, 2011). The potential intended for people and future flexibility incorporates more members embracing Vancity and increase in the company’s clientele. The potential unintended for people and future flexibility encompasses fewer members at Vancity and people not embracing the company’s activities.

10.

As part of the directors’ board, I would support the full implementation of the system at its proposal stage. The system improves the efficiency of the services availed to the customer. More precisely, the system is in line with the organization’s principles that have the aim to improve the member’s financial status (Vancity, 2013). The system guarantees the organization’s success and its implementation will ensure that Vancity Bank is fruitful at all times.

 

 

 

 

 

 

References

Oz, E. (2008). Management information systems. Cengage Learning.

Rice, J. F. (2010). Adaptation of porter’s five forces models to risk management. Defense AR Journal, 17(3), 375-388.

Roy, D. (2011). Strategic foresight and Porter’s five forces: Towards a synthesis. Grin Verlag.

Vancity. (2013). Vancity annual report 2013. Retrieved from http://annualreport.vancity.com/pdfs/Vancity_AR2013.pdf