What factors contributed to Fiasco?

UBI was found holding a pile of non-performing distressed loans that had slowly eaten into its
profitability. The total adequacy ratio had been declining each quarter since 2012, forcing the bank to stop
sectioning any fresh loans.

Identifying where United Bank of India Fiasco is on the Industry Life Cycle Curve
Identification of the place and placement on the industry lifecycle is important as it will help United
Bank of India Fiasco make important decisions and strategies for the future.
Strategic decision making

 Expansionary plans and investment decisions.

 Decide on various marketing strategies and tactics for targeting different consumer segments
to establish and establish the product.
 Selection of new geographic regions for expansion and exploration of new consumer bases.

Budget allocation

 Resources and alternative routes for future growth and establishment.

 Exploration of different diversification options.
 Resources and alternative routes for future growth and establishment.
 Exploration of different diversification options.

 
Figure 2 PLC Placement along the Industry Lifecycle curve

Introductory stage
Firm strength

 The industry is in the infancy stage.

  Firms are generally small, entrepreneurial and compact during this stage.
 United Bank of India Fiasco will be focused on research and development during this phase.

Financial Position

 Looking for investment and funds for growth.

Nature of product

 Products offered during this stage re doubtful as success and life of the product is unproven
and not known.
 United Bank of India Fiasco will use a focused strategy during this phase to emphasise the
uniqueness of the product.
 The product or the brand will have a small market of consumers – known largely as early
adopters
 Marketing strategies adopted by the company will focus on generating awareness of the
product and therefore, will largely use a functional appeal.

Growth stage
Financial position

 United Bank of India Fiasco will require high capital during this stage.
 United Bank of India Fiasco will need investment and funds for launching strategic
marketing campaigns.
 Funds will also be required for fueling physical growth of the company in the form of
investment in equipment and property to facilitate growth.

Growth factors

 Companies may increasingly encourage economies of scale because of standardization

experienced during this stage.
 Consumer feedback from the introductory phase will be incorporated, and research and
development will be conducted to make appropriate changes in the product design and
offering.
 Success in this stage for United Bank of India Fiasco will lead to growing demand, which in
turn will fuel sales demand.

Nature of Product

 Products in this stage have high growth and high market share.
 There is also increasing competition and rivalry in the market – new entrants will enter and
compete looking at the success of products during this stage.

Maturity stage
Sales and growth
  United Bank of India Fiasco will experience slowing growth during this stage of the industry
life cycle.
 Sales will be expanding, and earning will be growing – however, the rate will be slower than
the growth stage.
 Competition from late entrants will be present, and obvious during this stage – who will all
try to fight for United Bank of India Fiasco ’s share of the market.

Strategic Marketing

 The marketing strategies must now focus on building loyalty.

 Marketing tactics must be strong and should focus on the uniqueness of the product.
Increasingly emotional appeals may be used.

Firm size

 Firm size is generally larger and is more dominant over players if successful- compared to
growth stage.
 Innovations continue but are stable and not radical.

Decline stage
Industry changes

 New technological changes and upgrades may make an industry obsolete.

 Players within an industry may also fall back and lose on market share if they do not keep up
with innovations, and investment in research and development.

Sales and Competition

 Sales during this phase are decreasing at a high rate.

 Competing players also exit the industry because of the changes and low demand.

Surviving in the decline cycle

 United Bank of India Fiasco may also experience mergers and acquisitions during this phase.
 Diversifications are also most common during this phase as a means of survival.

Strategic Group Analysis

United Bank of India Fiasco and strategic group formation

 The strategic group analysis will look at an industry’s players' situations in focused
conditions and scenarios.
 It will assess different players competing with United Bank of India Fiasco through the basic
strategic factors that will decide an organization's profitability, similar to how the
profitability will also be impacted and influenced by the competitive nature of the industry.
  The strategic group analysis will describe the procedures of every single noteworthy
competitor of United Bank of India Fiasco along different strategic dimensions.
 These dimensions of comparison differentiate players into strategic groupings and must be
selected as the basis of comparison by taking into account industry structure, productivity
factors, and the venture issues being tended to.

Factors for leading Fiasco:

 The United Bank of India Fiasco cannot influence these factors in its favor, and in contrast,
these factors directly affect the operations and workings of the company.
 As a result, United Bank of India Fiasco must make sure to continually assess and review the
external environment to make sure that it responds to external factors, and take them into
account, during strategic decisions, and strategy devising.
Businesses like United Bank of India Fiasco make use of strategic model tools continually to
make sure that they are aware of the external environment

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption, as the
resulting repercussions may lead to possible impeachments or resignations of high-level
government employees.
 The laws that the country enforces, especially with regards to business, such as contract law,
as they dictate what United Bank of India Fiasco is and is not allowed to do. Some countries,
for example, prohibit alcohol or have certain conditions that must be fulfilled, while some
government systems have inefficient amounts of red tape that discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a country
that has no policies for IP protection would mean that entrepreneurs may find it too risky to
invest in United Bank of India Fiasco
 The trade barriers that the host country has would protect United Bank of India Fiasco;
however, trade barriers that countries with potential trade partners would harm companies by
preventing potential exports.
 A high level of taxation would demotivate companies like United Bank of India Fiasco from
maximizing their profits.
 The rate of GDP growth in the country will affect how fast United Bank of India Fiasco is
expected to grow in the near future.
 The interest rates in the country would affect how much individuals are willing to borrow and
invest. Higher rates would result in greater investments that would mean more growth for
United Bank of India Fiasco
 However efficiently the financial markets operate also impact how well United Bank of India
Fiasco can raise capital at a fair price, keeping in mind the demand and supply.
 The exchange rate of the country United Bank of India Fiasco operates in would impact the
profitability of United Bank of India Fiasco, particularly if United Bank of India Fiasco
engages in international trade. The stability of the currency is also important- an unstable
currency discourages international investors.
 The demographics of the population, meaning their respective ages and genders, vastly
impact whether or not a certain product may be marketed to them. Makeup is mostly catered
to women, so targeting a majority male population would be less population than targeting a
population that is mostly female.
  The class distribution among the population is of paramount importance: United Bank of
India Fiasco would be unable to promote a premium product to the general public if most of
the population was a lower class; rather, they would have to rely on very niche marketing.
 To some extent, the differences in educational background between the marketers and the
target market may make it difficult to relate to and draw in the target market effectively.
United Bank of India Fiasco should be very careful not to lose the connection to the target
market's interests and priorities.
 United Bank of India Fiasco needs to be fully aware of what level of health standards,
reactions to harassment claims and importance of environmental protection prevail in the
industry, and thus are expected from any company as they are seen as the norm
 The recent technological developments and breakthroughs made by competitors, as
mentioned above. If United Bank of India Fiasco encounters a new technology that is gaining
popularity in the industry in question, it is important to monitor the level of popularity and
how quickly it is growing and disrupting its competitors’ revenues. This would translate to
the level of urgency required to adequately respond to the innovation, either by matching the
technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the industry,
leading to other firms copying the technological processes/ features of United Bank of India
Fiasco
 The impact of the technology on the costs that most companies in the industry are subject to
have the potential to increase or reduce the resulting profits greatly. If these profits are great
in number, they may be reinvested into the research and development department, where
future technological innovations would further raise the level of profits, and so on, ensuring
sustainable profits over a long period of time.
 If United Bank of India Fiasco should (knowingly or unknowingly) contribute to the further
endangerment of an already endangered species may face not only the consequences from the
law but also face a backlash from the general public who may then boycott United Bank of
India Fiasco in retaliation.

United Bank Strengths Weakness

of India
Present Fiasco  Leading premium company that
operates internationally
 Leading presence across countries
 Reasonable control over
production and distribution due to
backward and forward integration
 Major dependence on the market
as the country of origin market
 Despite being in operation for
decades, has standard procedures
and regulations for all portfolio
items
 Imitability possible by
competition

Opportunities Threats

 New South Asian and Asia  Increased marketing from

Pacific regions available for
expansion – emerging markets
 Acquisition of medium-sized
similar companies and shops in
developing countries
competing players, which might
affect sales negatively
 An increasing number of
independent producers and
marketers
  Increased and saturating
competition

 Intellectual property laws and other data protection laws are, as mentioned earlier, in place to
protect the ideas and patents of companies who are only profiting because of that
information. If there is a likelihood that the data is stolen, then United Bank of India Fiasco
will lose its competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and ensure that
everyone in United Bank of India Fiasco is treated fairly and given the same opportunities,
regardless of gender, age, disability, ethnicity, religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible conditions that employees
were forced to work in during and directly after the industrial revolution. Implementing the
proper regulations may be expensive, but United Bank of India Fiasco has to engage in it, not
only due to the law but also out of United Bank of India Fiasco 's personal feeling of ethical
and social responsibility to other human beings.