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Assessment of business strategy: implication for Indian banks

Dhananjay Bapat (National Institute of Bank Management, Pune, India)
Deepa Mazumdar (Department of Human Resources, National Institute of Bank Management, Pune, India)

Journal of Strategy and Management

ISSN: 1755-425X

Article publication date: 16 November 2015

1231

Abstract

Purpose

The purpose of this paper is to explore the business strategy and its strategic orientation in the context of Indian banking sector. While past research has focussed on internal factors, organizational performance and organizational design, present research intends to fill the gap by assessing the strategic archetypes for Indian banking.

Design/methodology/approach

A review of literature resulted in 14 items covering various aspects of strategy orientation. A structured questionnaire was used to obtain insights from bank managers. The study is based on responses received from 330 banking officials working in various functional areas of banks in India.

Findings

Using factor analysis, the 14 items are reduced into four major factors: competition, cost, innovation and customer need. In terms of strategic preferences, the finding indicates that respondents have given higher rating for both market share (25 percent) and new products (25 percent), followed by cost (16 percent), competition (15 percent) and service (13 percent).

Originality/value

With the dominant preference for market share and new products, authors proposed a market share-new product matrix and identified four quadrants: low return, resource constraint, complacency and optimal performance. The study offers guidance to managers to frame and assess the bank strategy.

Keywords

Acknowledgements

The authors wish to thank the Special Issue Editors and anonymous reviewers for providing notes that significantly improved the manuscript in all stages of the peer review process. The authors declare that they have no conflict of interest with regard to the text and material used in this paper. The usual disclaimer applies.

Citation

Bapat, D. and Mazumdar, D. (2015), "Assessment of business strategy: implication for Indian banks", Journal of Strategy and Management, Vol. 8 No. 4, pp. 306-325. https://doi.org/10.1108/JSMA-06-2014-0047

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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