Rmb Private Bank

1. Introduction 2

2. Problem Stated 3

3. Company Background 3

Company History 3

RMB Private Banks Philosophy 4

4. Environmental Analysis 4

4.1 Pest Analysis 4

Political environment 4

Economic 5

Global Economic Forecast 5

Emerging Market and Developing Economies 6

Recent National Economic conditions 6

Significance to private banking 6

Social 7

Legal 8

Technological 8

4.2 Porters 5 Forces 9

Competative pressures associated with the threat of new entrants into the market 9

Competative pressures associated with the jockeying among rival sellers 10

Competative pressures coming from the attempts of companies in other industries to win buyers to their own substitute products 11

Competative pressures stemming from supplier bargaining power and supplier seller collaboration 11

Competative pressures stemming from buyer bargaining power and seller-buyer collaboration 12

4.3 SWOT Analysis 13

5. Critical Review of RMB PB Strategic Management Process 13

5.1 RMB PB strategic success according Porter’s generic strategies 14

5.2 Success according to the resource based (inside out) approach 14

6. RMB PB’s Sustainable Competitive Advantage 15

7. Final Recommendations 19

Recommendations based on Porters Generic Strategies 19

Recommendations according to the Resource Based Approach 19

8. Bibliography 20

1. Introduction

The word strategy finds it origins in Greek history. When defining the term strategy dictionaries will in general state something along the lines of strategy being the science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war. It will continue stating that strategy is the science and art of military command as applied to the overall planning and conduct of large-scale combat operations. Through these definitions it becomes clear that strategy refers to an advantage one entity tries to gain over another by any means possible.

When applying the term strategy to business one is likely to find it defined as: the process of specifying an organization’s objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. It is the highest level of managerial activity, usually performed by an organization's Chief Executive Officer (CEO) and executive team. Strategic management provides overall direction to the enterprise. (Wikipedia -http://en.wikipedia.org/wiki/Strategy - 14- May-2007).

The strategic management process is defined as: The overall purpose of the experimental strategic learning and management process is to establish which strategic options or elements thereof are robust across the scenarios and use the most healthy elements to develop your strategic intent - your core strategic focus or theme. (Strategic Management - http://www.1000ventures.com/business_guide/mgmt_strategic.html - 15 -May2007)

The company selected as the subject for this assignment is RMB Private Bank (herein after referred to as RMB PB). This study will give a brief description of RMB PB’s background and mission.

To get a clear understand of where RMB PB positioned themselves in the market a situation analysis will be done. The models used for the situation analysis are:

? PEST analysis

? Porters 5 forces

? SWOT analysis.

These three models are used, as there is sufficient reference in these models to understand RMB PB’s macro and microenvironment.

It is important to mention that although these analyses are conducted they are purely to identify strategic drivers