Siddhant_1212210068 Strategic management case study 1

1. Consider the vision and mission statements of the Reserve Bank of India.

Comment on the quality of both these statements.

Ans: In general, the vision of RBI is concise and clearly portrays to form a trustworthy and
driven bank without any flaws and to create policies that solve the current as well as
upcoming problems. Apart from that, it seeks to provide help during an emergency such as
financial crisis. Similarly, the mission of RBI is focused on developing an efficient financial
system along with certain measures like monetary stability. Overall, the strategic intent of
RBI to create a vision and design a mission precisely justifies the goals of RBI.

2. Comment on the possibility of RBI achieving its agenda of transforming the financial
sector in the light of its organisation structure, capabilities, and strengths and weaknesses.

Ans: The possibility of RBI achieving its agenda is quite real to some extent. This can happen
by developing organisation structure such as development of economic research facilities and
creating information system. Apart from organisation support, efficiently managing financial
sector like supervision of systems, information access, assisting banking, and financial
institutions to become competitive globally, can help RBI achieve its agenda. The strengths
of RBI such as large body of officers and staff, access to key data on the economy, wide
organisational network, established infrastructure and financial sufficiency can add a boost up
the speed of transformation. However, there also some weaknesses which affect or make it
tough for RBI to reach its goals like, structural rigidity, lack amount of ability, slow decision
making, and more.

3. Should the RBI go for a systematic and comprehensive strategic plan in place of its earlier
pragmatic approach of responding to environmental events as and when they occur? Why?

Ans: The RBI should prefer systematic and comprehensive strategic plan instead of
pragmatic approach as this is a dynamic process which involves formulation of strategies
then implementing, evaluating them and controlling them in order to achieve the aim. This
process also minimizes the weaknesses and the work is well planned and divided into concise
segments which decreases time duration and is more efficient.