Strategy Formulation by Banks

Abstract

The revolution experienced in the banking industry over the last decade has led to a constant series of changes with banks attempting to adjust their internal organisation to suit the ever‐changing external environment. The author includes edited extracts from his research into this process of strategic formulation and the translation of marketing and planning concepts to meet the needs and character of the corporate market in Britain. Major issues influencing the development of a competitive strategy are examined, topics of strategic formulation, differentiation and the nature of transactions between banks and their customers are discussed, and the findings of market and industry analysis, outlining the practical use to which research findings have been put, is illustrated. Findings reveal that banks have been forced to identify the profitability and content of the constituent parts of their total business, and market segmentation is now seen as a necessary discipline. The current economic environment requires not only a more rapid adjustment to change, but to be effective must create within the organisation a culture which induces managers to act as agents of change.

Citation

Carey, T.P.A. (1989), "Strategy Formulation by Banks", International Journal of Bank Marketing, Vol. 7 No. 3, pp. 2-44. https://doi.org/10.1108/EUM0000000001457