Read the Scenario below and answer the following questions Developments in South Africa s financial sector have seen new banks being licensed Besides, retailers such as Shoprite are now offering money transfer services a thing that was only done by banks before An environmental analysis of the banking sector has revealed that traditional banks such as ABSA, Nedbank and Standard Bank are no longer as viable as before This is partly due to the following 3 modern day issues also affect their business (1)Strategic alliances, (2) Industry regulators (including Unions) and (3) Global issues Absa Bank has engaged your strategic management expert services Provide a detailed explanation how each of the above environmental factors affecting the banking sector 3x 5 15 Marks In view of its declining financial and strategic performance, Absa has two strategic options Option 1 is that the company adopts a rejuvenation (turn around) strategy Option 2 is that the company exits the market Describe any 6 features of a declining company 6 Marks Advise Edcon on the different approaches initiatives under the two options above You are expected to present each option separately 2 x 8 16 Marks Recent studies have shown a shift in banking consumer behavior and preferences As an expert in strategic management, how can Absa Bank apply the Boston Consultancy Group (BCG)) matrix when selecting the most appropriate products to sell 8 Marks

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

Read the Scenario below and answer the following questions. Developments in South Africa`s financial sector have seen new banks being licensed. Besides, retailers such as

Read the Scenario below and answer the following questions.

Developments in South Africa`s financial sector have seen new banks being licensed. Besides, retailers such as Shoprite are now offering money transfer services- a thing that was only done by banks before. An environmental analysis of the banking sector has revealed that traditional banks such as ABSA, Nedbank and Standard Bank are no longer as viable as before. This is partly due to the following 3 modern-day issues also affect their business;

(1)Strategic alliances,

(2) Industry regulators (including Unions) and

(3) Global issues.

Absa Bank has engaged your strategic management expert services. Provide a detailed explanation how each of the above environmental factors affecting the banking sector.

[3x 5= 15 Marks]

In view of its declining financial and strategic performance, Absa has two strategic options.

Option 1 is that the company adopts a rejuvenation (turn-around) strategy.

Option 2 is that the company exits the market

Describe any 6 features of a declining company. [6 Marks]

Advise Edcon on the different approaches/ initiatives under the two options above. You are expected to present each option separately. [2 x 8=16 Marks]

Recent studies have shown a shift in banking consumer behavior and preferences. As an expert in strategic management, how can Absa Bank apply the Boston Consultancy Group (BCG)) matrix when selecting the most appropriate products to sell. [8 Marks]