Grupo Santander - a Strategic Analysis
SMM219
Organisation in THEIR Environment
Grupo Santander
A Strategy Analysis
Group1
STUDENT NO
0849925
0935655
0727788
0741846
Section Instructor: Dr. Adrian Haberberg
TABLE OF CONTENT
Page
1. Executive Summary………………………………………………………………… 1
2. Introduction…………………………………………………………………………. 2
3. Analysis of banking industry: Porters’ Six forces and PEST Analysis…………….. 3
4. Appraisal of Grupo Santander strategy: Ohmae’s 3Cs……………………………… 5
5. Recommendations…………………………………………………………………… 7
6. Bibliography…………………………………………………………………………… 8
7. Appendix………………………………………………………………………………. 9
Executive Summary:
• Banking Industry is the industry that is widely seen as the bedrock of the economy because banks help transfer risk and provide liquidity within an economy • Non banking financial services companies are the biggest threat to the banking industry • Despite the economic recession, the nature of competition in the industry is still fierce • The driving factors for this competition include mergers and acquisition, technology improvement, product differentiation and Corporate Social Responsibility. • Ability of Grupo Santander to succeed depends on how its strategy responds to these factors
Introduction
In this report we have analysed the environment (industry) of Grupo Santander based on current issues, emerging trends and their implications using; Porters five forces and PEST analysis tools. From these analyses, we were able to conclude that the nature of competition is fierce despite the present economic downturn.
Also in this report, we have analysed Grupo Santander’s current strategies in relation to current trends in the industry using Ohmae’s 3Cs. We have also accessed its financial position in relation to those of its competitors. Although Grupo Santander has increased its presence in U.S and Europe through acquisitions, it has neglected the emerging markets
Organisation in THEIR Environment
Grupo Santander
A Strategy Analysis
Group1
STUDENT NO
0849925
0935655
0727788
0741846
Section Instructor: Dr. Adrian Haberberg
TABLE OF CONTENT
Page
1. Executive Summary………………………………………………………………… 1
2. Introduction…………………………………………………………………………. 2
3. Analysis of banking industry: Porters’ Six forces and PEST Analysis…………….. 3
4. Appraisal of Grupo Santander strategy: Ohmae’s 3Cs……………………………… 5
5. Recommendations…………………………………………………………………… 7
6. Bibliography…………………………………………………………………………… 8
7. Appendix………………………………………………………………………………. 9
Executive Summary:
• Banking Industry is the industry that is widely seen as the bedrock of the economy because banks help transfer risk and provide liquidity within an economy • Non banking financial services companies are the biggest threat to the banking industry • Despite the economic recession, the nature of competition in the industry is still fierce • The driving factors for this competition include mergers and acquisition, technology improvement, product differentiation and Corporate Social Responsibility. • Ability of Grupo Santander to succeed depends on how its strategy responds to these factors
Introduction
In this report we have analysed the environment (industry) of Grupo Santander based on current issues, emerging trends and their implications using; Porters five forces and PEST analysis tools. From these analyses, we were able to conclude that the nature of competition is fierce despite the present economic downturn.
Also in this report, we have analysed Grupo Santander’s current strategies in relation to current trends in the industry using Ohmae’s 3Cs. We have also accessed its financial position in relation to those of its competitors. Although Grupo Santander has increased its presence in U.S and Europe through acquisitions, it has neglected the emerging markets
Bibliography: 1. Banking technology [online] (updated26 march2009) Available at: http://www.bankingtech.com/bankingtech/article.do?articleid=20000143663 [accessed on 16 October 2009] 2. Business week; 4/27/2009, Issue 4128, p61-61,1p 3. Cohen, N. (2009) ‘Doubts over political resolve for reform’, Financial Times. London (UK): Oct 6, 2009. pg. 1 4. Citigroup financial statement – MSN Money [online] Available at: 9. Lynch R., 2000. Corporate Strategy 2nd edition Harlow: Pearson Education 10. £100 when you join us [online] Available at: http://www.alliance-leicester.co.uk/current-accounts/premier-100-switching.aspx?ct=p1rfshomepageprs [Accessed on 17 October 2009] 12. Wall Street Journal Europe 27-08-2009 13. Zopa’s Trophy cabinet [online] Available at: http://uk.zopa.com/ZopaWeb/public/about-zopa/awards.html [Accessed on 15 October 2009). Source: Forbes (Accessed on 19 October 2009) 2006 – 2007: increased by 9% Source: Grupo Santander Website (Accessed on 19 October 2009) 2006 – 2007: increased by 19% Source: Citi group Website (Accessed on 19 October 2009) 2006 – 2007: decreased by 83%