Individual project 2

NAME: Anaita Daruwala

ROLL NO.: 83

VISION AND MISSION OF YES BANK

Brand Ethos

To be the Professionals’ Bank of India

Vision:

Building the Finest Quality Large Bank of the World in India

Mission

To establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the ‘Future Businesses
of India’

DIRECTIONAL STRATEGY:
Directional strategy is the game plan a company decides on and implements to grow business, increase profits, and
accomplish goals and objectives. Small businesses to large corporations can create their own types of directional
strategies that work for the focus and scope of each individual business. For example, certain companies may find that a
directional portfolio strategy works best, while other businesses may choose to follow a parenting directional strategy.

Growth Strategy

Companies that follow a growth strategy seek to pursue new markets, develop new products and find
new income sources. A vertical growth strategy involves selling new products to existing customers. An
example of a vertical growth strategy for a soft drink manufacturer would be to offer sugar-free or
healthier alternatives to their standard products. A horizontal growth strategy includes seeking out new
markets for potential customers. The soft drink company could also pursue a horizontal strategy by
pursuing marketing opportunities overseas.

Stability Strategy

A strategy focused on stability focuses on keeping operational changes to a minimum and maintaining
the status quo. Companies may pursue this strategy if they have a stable, reliable profit margin and
want to avoid the risk that comes with pursuing new opportunities. Managers also may opt for a
stability strategy on a temporary basis, as they build resources toward the next expansion project. For
example, a soft drink company may adopt a stability strategy if it has steady profits on its existing drinks
and hold off on introducing new flavors.

Retrenchment Strategy

The goals of a retrenchment strategy are reducing costs, cutting back on existing products and reducing
the company's workforce. The idea is that a temporary retrenchment will allow the company to
consolidate its resources and bounce back when conditions are more favorable. Companies may opt for
a retrenchment strategy due to economic downturns, industry-wide problems or internal issues. The
soft drink company in the previous examples may opt for a retrenchment strategy due to decreased
demand, increased cost of ingredients or health issues related to its products.

Stability Strategies

 Pause/ proceed with caution strategy

 No change strategy
 Profit strategy

IMPLEMENTATION OF PAUSE/PROCEES WITH CAUTION

ON YES BANK
PAUSE/PROCEED WITH CAUTION STRATEGY
The Pause/Proceed with Caution Strategy is well understood by the name itself, is a stability strategy followed
when an organization wait and look at the market conditions before launching the full-fledged grand strategy. Also,
the firm that has intensely followed the expansion strategy would wait till the time the new strategies seeps down
the organizational levels and look at the changes in the organizational structure before taking the next step.

Monetize your data

More than half of financial-services respondents in a recent McKinsey survey said their companies have begun
monetizing data. What’s more, data monetization seems to correlate with industry-leading performance.
There are multiple ways to monetize data. The first is for a bank to use its internal data more effectively for its own
operations by adding new analytics capabilities. Another is to create new offerings, such as reports or benchmark
analytics, based on bank data. Several of Canada’s biggest banks have partnered with Toronto-based SecureKey in a
system that allows individuals to use their bank credentials to access online services from the federal government.
The system works in much the same way as websites that allow users to log in using their Facebook account—
except in this case, Canadian government agencies provide access to online services when visitors enter their bank
credentials. The banks just use the data they already have to verify their customers’ identities, but then provide it
as a secure capability at a truly national scale and gain access to new potential customers.

PATIENCE
The bank now has to wait for the market to cool down and then sell their assets to recover the losses The assertion
from the bank, which reported its maiden quarterly loss of Rs 1,506 crore in the March 2019 quarter, came days
after continued concerns about the bank's asset quality, which came up last after a realty player defaulted and
leading to continued battering of its stocks which have lost more than three-fourths of its value in 2019.

In a statement, the bank termed concerns over asset quality, management stability and future prospects as
"unfounded speculations" and it suspects .. this is a "deliberate and malicious attempt to create instability in the
institution by undermining investor and client confidence".

GROW BEYOND YOUR CORE INTO RELEVANT ECOSYSTEMS

Banks have long relied on making customers aware of relevant products as a path to growth. In the past, that
approach was about introducing other banking products. For example, a customer with a checking account would
be encouraged to consider a personal line of credit, a home-improvement loan, or a bank credit card (see inner
circle of exhibit, labeled Core)

Grow beyond your core into relevant ecosystems

Banks have long relied on making customers aware of relevant products as a path
to growth. In the past, that approach was about introducing other banking
products. For example, a customer with a checking account would be encouraged
to consider a personal line of credit, a home-improvement loan, or a bank credit
card (see inner circle of exhibit, labeled Core).

A narrow focus on core adjacencies ignores the broader role a bank can play on
behalf of its customers. By moving into ecosystems beyond the traditional core,
banks are able to tap their existing client base and operational capabilities,
strengthen engagement, and capture data that will provide a more complete view
of customers’ needs.

Ideabank and ING, for example, have extended into banking adjacencies (see
middle ring in exhibit) by providing services like accounts-receivable management,
factoring, accounting, and cash-flow analysis to small and medium enterprise (SME)
customers. The fintech start-up Moven built a pioneering mobile money-
management app and is now partnering with financial institutions to provide this
service to retail customers.

Some banks have even gone farther and moved into nonbanking adjacencies (see
outer ring in exhibit). Post Bank, for example, has become the largest provider of
mobile phone services in Italy. Other banks are partnering with care providers and
health insurers to provide a consolidated billing platform that makes it easier for
consumers to pay for medical expenses.

Extending beyond the core can allow banks to form a network of value across
industries and create their own “ecosystems” that provide the services customers
want at lower cost and with greater convenience. In addition to generating new
revenues, ecosystems of this sort can protect banks from the efforts of fintech
start-ups and digital giants to invade banking’s traditional turf.

Banks should consider this option if  … they have significant market share in one or
more core product areas. Banks in this position may find it difficult to increase their
share in existing segments. Moving into adjacencies—both banking and
nonbanking—allows them to take advantage of their already strong franchises by
offering new services to current customers.

Banks should consider this option if....  they want to enter new markets or segments
without the need to invest in the physical infrastructure that would otherwise
make such moves prohibitively expensive. This approach is useful for exploring
market opportunities, but it requires sufficient digital skills (design, customer
experience, analytics, etc.), the expertise to scale wins, and the management
discipline to kill off poor performers.