Introduction
As it has always been said, a large incumbent company can suppress entrepreneurial initiative and energy but a dynamic financial sector, in which incumbents and new entrants can get finance under competitive terms, can create competitive pressures in the market. According to this case study St. George bank had to some extent managed to undertake the industrial advantage in Australia, for example, as indicated in St. George annual report (2007) the company had perceived a low-risk organic growth strategy that focused on forming strong customers’ relationship, building internal culture and making operation as efficient as possible. The bank has also managed to get the best use of technology, the best human resource team, and the best resource director. It had managed to establish a strong relationship between human resources and the business (Donaldson, 2005). The bank had gained the ability to listen to the changing needs of their employees and attract and retain talent within their workforce (Human Resource Magazine 2007).
Main body
The bank was close to business function and was able to foster entrepreneur qualities such as being proactive and innovative with human resources and this resulted in the human resource team adopting a proactive role to issues rather than a reactive role. (Donaldson 2005) Proactive role build result and credibility to human resource function, for example, a human resource could investigate business needs and therefore construct quick innovative solutions with viable outcomes. St. George Human Recourse Team was known to focusing on the long-term implications for culture and organization rather than short-term policy and procedures. (Donaldson, 2005) The bank ensured that the right people with the right attitude were hired and this was true assigning future step companies as recruitment to offer a dynamic way for customers to conduct their banking through the establishment of three banks in Australia.
Though St. George bank had successfully engaged innovation, proactiveness, and risk-taking in its business operation it can still achieve the competitive advantage by applying them a step higher. As Porters (1990) asserts, it is argued that companies achieve competitive advantage through acts of innovation. Innovation can be achieved through the application of new technology and new ways of doing things. For instance, St. George bank may aim at applying new technologies creation of new services and differentiated processes.
St. George should also come up with new methods to access their customers and also new channels on which the customers can get their services. The bank should also introduce a service whereby customers should be able to open a new account free of charge i.e. without the initial minimum balance as a means of attracting more customers; this though a more risky venture will attract a wider customer base thus business expansion. This will act as an innovative and proactive method. The bank may also apply innovative measures through the change of management process by applying specific tools rules and discipline. (Davilla, et al 2006) The bank can also aim at opening more branches in Australia and other parts of the world i.e. taking advantage of the market sector it has not penetrated in before.
They should also come with new procedures of issuing loans, withdrawing, depositing, and transfer of money. (Judith and Robert, 2006) This will not only boost their business operations but increase customer confidence as well.
Proactive strategies give a business a more competitive advantage compared to reactive strategies. St. George bank should be involved in increasing employee morale commitment satisfaction and ensure good working conditions which will result in retaining employees. The bank should also offer extensive training and development of employees in different areas including leadership, management, sales, and marketing. They can also come up with methods of attracting more customers through strategies like zero operating balance of an account. They can also charge low interest on loans issued to customers. In addition, the bank should incorporate seminars and workshops to train and educate their employees hence tap the creative and strategic entrepreneur talent. (Elizabeth, 2005) The bank can also apply a proactive strategy by inviting foreign investors through making their services attractive to foreign investors, for example, they can ensure them enough security of their money. To attract millions of customers St. George bank should offer mortgage financing, consumer financing, and auto financing services.
Conclusion
Gratifying aspects of the bank’s reform in the financial sector will be broadening access to financing by the lower and middle-income groups whose loan recovery track record is far superior to that of the large farmers and large business houses. (Judith and Robert, 2006).
By implementing the above recommendations St. George Bank can proudly claim taking initiative in building social and physical, making strides in ensuring and fostering a stable domestic macroeconomic environment, and lastly making serious progress to ensure a level playing field incorporating all economic players whether large or small, domestic or foreign.
Reference
Elizabeth, C. (2005). Entrepreneurship: Globalization, Innovation and Development, California University Press, California.
Jerome A. Katz, Dean A. Shepherd (2004). Corporate Entrepreneurship, McGraw-Hill, New York.
Judith W. and Robert L. Heneman (2006).Human Resource Strategies for the High Growth Entrepreneurial Firm, Cambridge University Press, London.
Porter, ME (1980), ‘how competitive forces shape strategy’, Harvard Business Review, USA.
Robert L. and John H. (2006).Human Resource Management, Prentice Hall, New York.
Wei, L. (2006). Strategic Human Resource Management: Determinants of Fit, Research and Practice in Human Resource Management, 14(2), 49-60.