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Morris Kitua046263

Take Home AssignmentBusiness:

Chase Bank Kenya Ltd

Brief History

Chase Bank (K) Ltd is a local premium bank in Kenya’s banking industry. It was previouslyknown as United Bank. Initially, the bank was based in Kisumu and run by a politically connectedfamily with no banking experience, eventually it was placed under Central Bank StatutoryManagement. In 1995, it changed its name to Chase Bank under new management and relocatedto Nairobi in 1997.

Question 1

Conduct a SWOT analysis and illustrate how the variables have impacted on the businessoperations

Strengths

Bank’s Management

The bank’s board of directors comprises of high net worth individuals of integrity and extensivelyexperienced in business management with executive directors from international bankinginstitutions that has embedded global standards of professionalism at a local level who arecommitted to making the institution a premier corporate bank.

Percentage of Stock

The Bank has good shareholding ratios that give the local management relative autonomy fromthe foreign shareholders when it comes to decision-making.The foreign investors however are quite well established firms in their respective countries andhence give the bank a reliable and stable image.

ShareholderPercentageLocal ShareholdingCountry75%

Osman MurgianKenyaSadolin GroupKenyaJames GachuiKenyaSenior ManagementKenya

Foreign shareholding25%

Winton Asset ManagementUK.Giuseppe Family (Shipping business)Italy.

Total100%

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Organizational structure

Chase Bank’s present structure is an open plan approach, which makes the organizationresponsive, flexible and ensuring that customers are always in contact with the bank. The bank has an open plan policy. All staff, including senior management and directors sit in open areas.This has contributed immensely to the flow of information in both directions.

Decision-Making

Decision-making is consultative and policy is driven by committee decisions. Through variouscommittees, the bank’s decision-making process is systematic and well thought out. Thesecommittees cover all the crucial facets of the bank, including operations, information technology,human resource, treasury, customer service and marketing

Team building

The board of directors, management and staff of Chase bank work as a team to fulfill their mission as a bank and to satisfy the financial needs of their clientele as well as to providecorporate social responsibility.

Degree of autonomy

As a result of Kenya’s banking law and the regulations of Central Bank of Kenya that govern the banking industry, Chase Bank’s independence to fully make its own decisions is restricted. Inaddition the bank’s constitution restricts it from acting beyond its powers.

Empowerment

Empowerment at Chase is through the following ways: in-house and external training, seminars,conferences, study leaves and so on for both management and staff.

Culture

There are a few well defined or emerging culture composed of shared beliefs, expectations andvalues. The bank believes that no employee should be discriminated upon in terms of race, sex,religion and HIV status and for this reason, a potential employee is not required to submit a healthreport on his/her HIV status. Secondly, there is a belief in the bank that a phone should not ringmore than three times without being answered whether it’s a landline or cell phone. Thirdly the bank treasures its clientele and therefore believes that a customer should not queue in the bankinghall for at most 20 minutes whether he/she is banking money, depositing a cheque or waiting for statements and so on. It’s also a tradition at the bank that every department holds a meeting on a bi-weekly basis to review its progresses. And lastly, Chase Bank thinks of itself as one smallfamily, which is a source of support to achieving its mission/strategy.

Product

The breadth of the product line is broad enough but it can be broadened. Its products include:

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Current Account

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Savings Account

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Foreign Currency Account

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Fixed Deposit Account

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Call Deposit Account

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Overdraft Account

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Amortized Loans

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Local Bills

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Overdrafts

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Letters of Credit

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Bank Guarantees

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Term LoansChase Bank also offers International banking i.e.

Telegraphic Transfers:

Chase Bank facilitates import related and other payments by doingtelegraphic transfers in almost all major currencies of the world. It also issues Demand Drafts inforeign currency in almost all major currencies of the world and local FCY demand drafts in threecurrencies (USD, GBP & EURO). All outward remittances are done in adherence to the CBK guidelines.

Treasury Services

The bank’s treasury department has established itself as a market leader in theforex market in Kenya. It offers the most competitive forex rates and has a team of specialistswho can advise on forex requirements.

Pricing flexibility:

Chase bank is relatively expensive compared to its competitors. For example, a banker’s chequefor an account holder goes for Kshs300/= while equity bank’s is Kshs150/=. However, ChaseBank’s products and services are exquisite making the price worthy. Many of the bank’scustomers have no problem with the pricing.

Place (Distribution system):

Chase Bank’s clients cut across most sectors including other banking, insurance and stock broking institutions as well as individuals and professionals whose personal accounts make up the bulk of the bank’s burgeoning deposit volumes.

Promotional efforts

Chase Bank spends less on its advertising because it uses its marketing department to promote the products of the bank and the bank as a whole. The bank occasionally uses the local newspaper toadvertise the promotion or appointment of managers and directors of the bank. It also uses brochures to at times which is not a very expensive means of advertising.

Weaknesses

Management has failed to ensure the long-term survival of this firm in the area of Organization of General Management. This means that a formal long-term strategic planning system is lacking in

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