Svenska Handelsbanken Case Analysis

1. Answer to case Svenska Handelsbanken No t e b o o k Cre at e d 5. Org Control 2012-05-08 1045 Up d at e d 2012-05-08 2331 1. Using the 7S- mildew, describe what are the elements and the linkages in Svenska Handelsbanken. Which one of the 7 components is vital? Provide arguments for each of your descriptions, and not genuine conclusions. 7 S model consists of 7 elements which are Strategy,Structure, System, Shared Value, Style, Staff, Skills. Applying 7S model to Handelsbanken Strategy cost-efficiency = low cost competition. doing safe investment, avoiding speculation. risk discipline) international expansion. differentiate with customized service/products, targeting for those picky customer concerning about quality of service. use communicate effect for marketing. (use word of mouth to market their products). focus on discomfitcast / middle sized customers. open tree branches close to those giant corporates. provide financial sustainment to Nordic companies who expand internationally. Structure Handesbanken is a typical decentralized (in term of division/geography) company, which consists of many a(prenominal) autonomous branches. Those autonomous branches have bountiful amount of control and responsiblity. lat management The only layers between branches and chief executive officer is a group of 11 regional manager. therefore the hierarchy of entirely company is very flat. (add CFO or something else . ) System there is no top-down goal setting and annual budgeting. branches compete with each former(a) in term of RoE = league table HRM system = incentive system, employee holdings (Trust company). (put into System or Staff or Share Value, ) Risk control bottom-up product development process. cost management system (both deputation and branch manager), Shared Value (culture) core customer-oriented. need better phrasing ) culture of thrift. senor of ownership = from employee level to branch level. people recognition creation growing p eople ( ) Autonomous (structure ) Style long term orientated customer focused style. (preservative) responsive to customer request. empowerment (share value or style ) Staff recruit people who has inner drive, self-starting, committed to service. entrepreneurship for the branch manager extrovert/open/out-going Skills with considerable banking experience. entrepreneurship skill is a must(prenominal) for branch manager. ross-selling skills which one is vital ? (provide evidence) shared value is vital. because it is the internal driver for other(a) six. candidates schema, staff, structure. 2. What are the Critical Success Factors (CSFs) for the Handelsbankens decentralization glide slope? Provide arguments WHY these are tell base your answer on spokespersons and arguments from your groups own business and work experiences and not on copy & paste from other sources. People = entrepreneur. (Christian) indebtedness of control cost/earning profit/risk management, down to ind ividuals. local resources and market.Customer-orientation (Christian, to provide live example) Autonomy (elaine, to provide live example from her own company to support this point). 3. What does this tell us about the key sources for success of ANY decentralized business? empowerment/autonomy (control & responsibility down to branch) foster the competition among decentralized units. use KPI to closely monitoring device the performance of decentralized units. Shared value amongst all branches. systematic support from head office for all units. ( ) 4. What are the challenges that Lars Kahnlund faces in this particular organization, in his efforts to drive change and accelerate growth? alance the culture of autonomy and guiding approach. = branch has strong motivation to control its own product and service. = from opinion of entire company, new competitive products may be also needed. in reality hard to control the decentralized unit, because there are so many branches out there and structure is so flat. how would he get his strategy executed effectively and efficiently ? how can we keep them in tack together ? too many culture in different areas, so he needs to take care culture conflicts. resistance from employees is expected. (elaborate on this later, including the perservative culture)