Anglo Irish Bank Has To Restructure Plan Business

Introduction:

Anglo Irish Bank is self dependent bank of Ireland and it's headquarters in Dublin. It was established in 1964 and listed in London stock exchange in 1971. During 1995 Anglo Irish acquired Royal trust bank (Austria) which has 100 year past history with Royal bank of Canada so at the end it renamed as Anglo Irish bank. The company mainly deal with business and commercial banking , also limited number of retail presence in specific Irish cities. This bank also work with wealth management and treasure divisions. It also present in many countries like Austria, Switzerland, United kingdom , USA and Isle of man.

Macro Analysis :

Ireland has been place for investors for minimal rules and regulation and low tax rates, it was attractive in most respects. Although strong labour and rising wages have diminished its position in the manufacturing side, also competition in banking and financial services with new entrants. The government sustain a policy of minimum interference to the economy. No export performance needs and no distinctions has existed base on the source of investment.

There was also freely convertible currency and permit complete freedom of capital movement. Foreign companies are not classified from repatriating capital and profits including dividends, royalties, service fees and branch profits. As a sum up with this argument market is open in the world. The government allow 100 % overseas ownership in many industries which also include banking and financial sector.

PESTEL Analysis :

Political factors :

Government pressure on bank and strict regulation

Autonomy from people's of Ireland.

Economic factors :

Economic crisis in country.

High operating cost

Tax increased rapidly due to financial problems in country.

Social factors :

Implementation of the national payments strategy

Promotion of financial inclusion.

Implementation of the next phase of the social finance initiative

Technological factors :

High technology projects and technology transfer arrangements from overseas investors investing in R& D

The use of information technology and online banking change various aspects of the industry.

Legal factors :

There are some comprehensible legal and judicial system that settles disputes

Companies may be structured without conditions on ownership

Liberalization and reform in the financial infrastructure

Porters Five forces Analysis :

In the banking and financial industry, Customers, competitors and brand name is play a vital role. The rules of competition governed by five forces which identify it's strength of becoming more attractive than others.

http://notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/

ForceStrengthTrendComments

Entry

High

Changing

Entry is very attractive due to less barriers and openness to foreign investors.

suppliers

Low

Changing

Shortage in the supply of skilled workers. The use of Information Technology is costly

Buyers

High

Changing

The demands of customers are changing which requires the industry to produce new products, better channels and more responsive services.

Substitutes

Low

Changing

Customers from small and medium sized banks are likely to transfer to reputable institutions such as the Royal bank of Scotland, Allied Irish bank, Bank of Ireland. This has been the case especially during the UK financial crisis.

Rivalry

High

Increasing

The openness to foreign investments has paved the way for a tight competition.

Resources of Anglo Irish Bank :

Resources of Anglo Irish bank related with local public , government and European union. We know that good service and proper financial strategy necessary in this banking sector. Also some awareness of financial and particular human resource management is necessary to short out the financial issues.

Financial resources and Human resources:

Currently exists a large number of personal finance education resources, each work it's own way to the promotion of financial information and education. It's become more useful within the education system or among the adult population. This is directly or indirectly used by financial sector. The objective of financial research describing consumers ability to manage money and budget their own finances, also plan for the future and assess and develop new financial products and services.

Competences of Anglo Irish Bank :

Competences mainly refer to the capabilities of the bank which compete with other banking industry and financial sector. Every organization has capabilities to compete with competitors with good quality of customer services and providing financial help to local people's of Ireland.

According to this resources and core competences the following strategy can helping for getting its existing customers. The scope of possible strategies are :

As the organization in financial crisis so first of all develop new strategy and solving the borrowed money problems in bank and increase liquidity of bank by promotional strategy.

Using new technology and new services customers feel that they gaining reasonable benefits in reasonable prices. It will raise the share price of the market.

Its funds should be invested in profitable ventures it will increase its share prices.

Stakeholder Mapping Technique :

Stake holder's are basically the persons who are interested in the company. They are

Customers

Employees

Shareholder

Creditors

Customers are the person's who interest in specific service of bank. Products or service is meant by fulfilling customers needs and expectation so companies are trying and reach to their expectation for gaining competitive advantage.

Employees are also key players because by their skills and interest to achieve the common goal of the company. Their proposed strategy and technique going to use for companies development.

Shareholder are the persons who invest large amount of money on companies current situation and expecting profit on their investing money. In the current strategy the shareholder of Anglo Irish bank are not satisfied because of financial crisis in country and profit of banks goes down rapidly.

Creditors are the person who provide credit to the bank. In this critical situation of Anglo Irish bank creditors are important to help the bank for overcome and financial support for short terms. Creditors will be government, European union or any financial institutions.

Governance chain :

Governance chain reflects to the authority of the organization how it going on in the current situation of organization. Every organization has different governance chain as per their working style. It also decide how another group influence by organization purpose and strategy. These chain represent how they involve in their ownership. Corporate governance requires an arrangement of test out and balances planned to describe about the parameters of authority through responsibility. Corporate governance is relate to modern business whether it is small firm or big, private or listed, subsidiaries, government or non- profit entity.

Trustees of funds

Limited reports

Investment performance reports

Investment managers

Accounts

Analysts' reports

Company briefings

Buying/selling shares

Board

Senior executives

Executive directors

Managers

Budgets/targets

Qualitative reporting

Budgets/simplified targets

Operating reports

Budgets/targets

Qualitative reporting

Source: Adapted from David Pitt-Watson, Hermes.Ethics and Corporate Responsibility :

The main element of business prospect is ethics on which every business works in right way. Ethics properly inculcated in the organization by government rules and regulation. All successful business done by ethical which include social as well as cultural activity in organization.

Corporate Responsibility is responsibility towards the society of their own communities. The organization also depend upon the society. They have to continually invest in developing their staff and maintaining quality relationships with stakeholders.

1. Short term shareholder awareness

2. Long term shareholder awareness

ETHICAL

STANCES

3. Multiple stakeholder obligations

4. Shaper of society

Freedom's consideration :

Milton Freedman (1962) considers that organisations have a social duty to develop all its wealth for profit maximization and there should not any fraud or errors in this process.

Deontology :

Deontology describe the morality take place by consideration the nature of the act. It mention how achieve the goal of company and why agents involved.

Utilitarianism :

It define as how school of thought fulfil needs , interests and at the same time decision take place regards to that matter. Top management decide this school of thought.

Egoism :

Egoism principle mention an initial self-interest. Company has to keep in mind which action take place in the system and one or other strong stakeholder does not spoil the value of other.

Lynch's polygon of purpose :

Innovation is the thing doing something new. In the Anglo Irish bank using the new online system and latest information system to share their data in systematic manner. Bank have to follow some rules and regulation for critical time in organization.

There is also a important factor to survive in the competitive business market because by which organization realize customers expectation.

For customer satisfaction organization have to follow legal terms and condition and use the better service towards the customer. It's related to customer satisfaction and loyalty.

Customer Value

Cultural Value

Stakeholders

Survive

Mission and Objectives

Technology

Innovation

Leadership growth

Different country has different cultural values in market place so important to learn the culture of country. According to that provide the companies website and advertisement for gaining their response for company. Stakeholders also invest their money which follow the strongly cultural thing in organization.

Stake holder are persons who always willing to support the organization. For growth in the banking sector healthy relation are necessary with stakeholders.

Leader wants organization in right way for success to achieving goal and objective of business. A leader understand the critical situation and analyse in proper way and implement new strategy for business.

Mission and vision of Anglo Irish bank :

"We have people on four continents and offices in seven countries. But Wherever we are, we all share the same values."

There values give the equal importance to everyone working in the organization. Use entrepreneurial approach for solutions and sustainability drives everything they do.

Implementation Plan :

Minimising the cost to the taxpayer and working with the concern of finance minister and official suggestion for achieve objective of company. Maintain the funding and liquidity in the bank, maximize the exit options for government. Minimize the negative systemic threats in the Irish banking system. Due to global recession and stressed financial market conditions bank have to access to overseas funding markets for all Irish bank. Increase GDP growth rate by specific interest rate. To maximize recovery on all loans and recruit high skilled employees and strengthen the top management level.

Specially concentrate on below points:

Funding and liquidity

Risk management and oversight

Asset recovery

Efficiency and cost management

Capital management

Conclusion :

To sum with the different critical situation in Irish market and economy goes down rapidly. Organization has to develop new strategy for financial sector. Also recover liquidity and proper fund from the market. Government and European union's rules and regulation are follow by the banking sector in Irish market. Organizations have to make strong relationship with stakeholders and making strong core competences in the organization. Anglo Irish bank has to restructure plan and give importance to lynch's polygons possible factors.