The Co Operative Bank Commerce Essay

The Co full(a) Bank Commerce EssayThe co working entrust is the oldest pop and ethical imprecate of UK . For over 150 courses the cant has been a democratic affirm , never losing its edge on its democratic tiptop . It would be very(prenominal) interesting to know ab come on the work stopping point of such a gravid democratic depose . The co secret agent brink is as well as a secular bank . The employees not only if consist of catholics however overly multitude from naked as a jaybird(prenominal) religions . For example the treasury of the co in force(predicate) bank is Rajesh Bhatia who is a hindu . So community from diverse religions are working together to form wiz big bank that is co in force(predicate) bank . The bank tries to maintain a very friendly environment for its employees . All the employees are given a chance to suggest their views but there is a process in which these views are analysed . This process takes place in stages . If some work er has whatever new root word thence hw bequeath tell it to the carriage . The manager will first look into the idea then he will analyse it and decide the category of the idea . Whether the idea is related to mar or retailing or the general redress . After categorising the idea the manager will then send it to the head of that respective battleground . They take a look at that idea and in bring come on send it to the acting CEO . The CEO will forward it to the carte of directors and then the termination will be taken . All all important(predicate) decisions are taken in this same manner or stages . It king take a little time but the process is a full proof procedure . The workers never refer to the manager as Sir . They always call him by his name . The employees feel very good working in the co intelligence officer bank . The co in operation(predicate) bank has been rated as one of Britains top employers 2012 by http//www.britainstopemployers.co.uk . A draw poker of aspects have been considered in this research before coming to the conclusion that this bank has outstanding working conditions . The outstanding working conditions intromit commitment to friendly goals , ability to mix profits with principles , rejuvenating a lots loved distinguish , pioneering fair trade gross revenue in UK and commitment to ethical finance . Britains top employers 2012 first made close assessments with the HR division of The co artist bank . Here all the critical areas of the HR department were assessed such as primary benefits , secondary benefits , working conditions , training and life history opportunities . A review is then taken . The review is thoroughly taken from the answers of actual participants only and then ratings are given . The co sherlock bank achieved positive ratings and reviews in almost all the sectors of assessments .Source Rabobank operative STARTEGYEven though The co operative bank is an ethical bank but they do charge interes ts . Beca use up any organization needs cash in hand to keep working . iodin great advantage of the The co operative group is that they are not just operating in banks but also in food retails , housing , farming and education . So the profits from all the sectors are utilized thoroughly and they try to circularise it equally . Last year profits of around 50 jillion pounds were earned and about 40% of the profits were distributed to elements , staff and community groups . One of the important business strategies of The co operative bank is providing memberships . Membership is what makes The co operative bank different from other businesses because The co operative bank is run by its members and the bank gives a chance to its members to say how the go with needs to be run . When one becomes a member then he will get a membership card . So everytime a member buys something from The co operative then they can use their membership card . By doing this they earn points . Twi ce a year , the points that the member has earned are turned into cash and given to him as a share of the profits . It is very easy to become a member and there are lots of deals , discounts and money saving offers for the members to do it . Not only can one choose from the outstanding fiscal products of The co operative bank but by simply doing the twenty-four hour period to day banking as a member , he can sum up his share of profits as well. On current accounts , for every 10 pounds held on an average in a co operative bank , one can earn 1 point . For mortgages , for every 40 pounds outstanding on a Co operative bank or Britannia mortgage , one can earn 1 point . For loans , for every 10 pounds outstanding on a Co operative bank or grin loan , one can earn 1 point . For Savings accounts , every 20 pounds held in a Co operative bank , smile or Britannia savings account , one can earn 1 point . For Car/home/ deary insurance , for holding an annual Co operative insurance constitution , one can earn upto 250 points . For credit card , every 10 pounds held on or borrowed on Co operative bank or smile credit cards , one can earn 1 point .According to http//www.co-operativebank.co.uk , one of the most important and profitable startegies for The co operative bank was to merge with Britannia on 1st August 2009 . This spinal fusion aimed at providing better profit for the share holders and also creating new vocation opportunities . This new business was successful in achieving more than 70 one thousand thousand pounds of assets , nine million customers , more than 12,000 employees , more than 300 branches and 20 incarnate banking centres . The Co operative now comprises of The co operative bank including smile and The Britannia business , The co operative insurance and The co operative investments . epitomeLet us do a chock up analysis on The co operative bank . According to David Jobber , a SWOT analysis is a structured approach to evaluatin g the strategic position of a business by identifying its strengths , weaknesses , opportunities and banes .StrengthsAccording to the article The Co-operative How to measure its strength , The co operative has an advantage of the internet bank Smile. This Smile has become a very successful form of internet banking in the recent historic period . It has increased the demand of The co operative bank very much . Smile is a very famous and efficient provider of pensions and insurance . The profits of The co operative banks boomed to 73.4 million pounds in the first half(a) of 2008 . According to http//www.co-operative.coop , the core banking platforms of the bank has been upgraded by introducing some of the most in advance(p) computing systems which are very fast and efficient . So this has also improved customer servicing effectively and thus increased customer satis detailion and improving their experience . During the merger with Britannia branded branches , these technological improvements gave customers salutary four fold increase in outlets to conduct their banking .WeaknessesAccording to The accommodative Banking Model Performance and Opportunities byHans Groeneveld , now a days the members take care it difficult to manage the brass instrument due to the increased complexity of the organisation in which the management group consists of dedicated professionals . It has also been be out that the membership process makes the decision making very slow and also prevents innovation and adjustments to new developments . (Hans Groeneveld , 2011)OpportunitiesThe co operative bank provides opportunities to further ones life story and also to build one from the scratch . The bank provides job opportunities at its head office in Manchester and also at other branches . The bon ton is maintaining a separate portal for registration for jobs . The bank also provides a lot of credit facilities to the customers if they want to start a new embark .ThreatsThe evo lution of large scale foreign and unknown markets could endanger the traditionalistic heart of The co operative bank . Recently The co operative bank has started taking a lot of risks involving naughty profit investments . In one of the move of the bank , it announced plans to transfer work out of northeastward Staffordshire . This move would almost leave jobs of 65 employees under threat . Apparently this move is being made for greater financial overtop and tougher regulatory requirements.STRENGTHS1 High customer satisfaction2 procession market shares , dense branch networks3 Stable profits , high rating , low funding costs4 Relatively unaffected(p) by credit crisis5 Contribution to stability and diversity in financial systemsWEAKNESSES1 Become more complex2 ambitious to manage due to complexity3 Membership process makes decision making slow4 Slow innovationOPPORTUNITIES1 boost ones career2 Help in new venture3 Financial advice4 Good credit facilitiesTHREATS1 threats from large scale foreign and unknown markets2 Increase in risks by The co operative bank3 The move to leave out North StaffordshireNow let us look at some macroenvironmental aspects of The co operative bank . These include political , economic , ecological , well-disposed and technological aspects .PoliticalAs it has been explained in the hierarchy of The co operative bank , it is a democratic bank .EconomicThe co operative bank has been one of the most successful banks of uk in recent times . It has tried to maintain its economy throughout . This can be found out by comparing their financial performance between 2010 and 2011 as per http//www.co-operative.coop/corporate/Press/Press-releases/Headline-news/Results-2011/Financial performance20112010% changeGross sales13.3bn13.1bn+1.0%Group operating profit585m582m+0.5%Profit before tax and member payments (equivalent to the pre-tax profit of a plc)373m396m-5.8%Net borrowings1.49bn1.44bn+3.3%EcologicalAccording to A co-operative viridity economy by Pat Conaty , protecting the environment is one of the very important aspects of The co operative . These include reducing the gross honey oil house gas emissions by 35 % by 2017 , producing around 25% of electricity using renewable sources of energy , setting up a head office that will set new standards in sustainable design , construction and operation . Thus they are also come to with the safety of the environment .SocialInspite of so much competition and other foreign forces , concerne have been made to maintain the ethical standards of The co operative bank . The bank has been quiet successful in this approach . The fact that it won so many accolades proves it . Some of the awards that it won in 2011 include master of the Observers Ethical Business Award first place in Business in the Communitys Climate Change Award and Platinum increase in their Corporate Responsibility Index a leading rank in the Sunday Times Best Green Companies List and winner of The Financial Times award for Europes Most Sustainable Bank.TechnologicalThe bank went through massive technological renovation recently and has upgraded itself with all new systems . The banks call centre has been very efficient in helping the people with difficulties . Smile has been one of the top internet banking .