The Co Operative Bank Commerce Essay

The Co Operative Bank Commerce EssayThe co artificer brim is the oldest republi give the axe and ethical wedge of UK . For over 150 years the argot has been a democratic bank , never losing its edge on its democratic stature . It would be very interesting to know ab extinct the work culture of much(prenominal) a big democratic bank . The co operative bank is in like manner a secular bank . The employees not just consist of catholics but also people from different religions . For example the treasury of the co operative bank is Rajesh Bhatia who is a hindu . So people from diverse religions be working together to form one big bank that is co operative 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 lands place in stages . If some worker has any new idea then hw will tell it to the bus . The manager will fi rst look into the idea then he will analyse it and decide the category of the idea . Whether the idea is related to spoil or retailing or the general insurance . After categorising the idea the manager will then send it to the head of that respective area . They take a look at that idea and in turn send it to the acting CEO . The CEO will forward it to the board of directors and then the last will be taken . All important decisions are taken in this same manner or stages . It might take a weeny time but the process is a full proof procedure . The workers never refer to the manager as Sir . They always call him by his denote . The employees feel very good working in the co operative bank . The co operative bank has been rated as one of Britains top employers 2012 by http//www.britainstopemployers.co.uk . A lot of aspects have been considered in this research before coming to the conclusion that this bank has knocked out(p)standing working conditions . The outstanding working c onditions include fealty to complaisant goals , ability to mix net profits with principles , rejuvenating a much loved brand , pioneering fair trade sales in UK and commitment to ethical pay . Britains top employers 2012 first made close assessments with the HR division of The co operative bank . Here all the critical areas of the HR department were assessed such as primary benefits , secondary benefits , working conditions , training and career opportunities . A review is then taken . The review is thoroughly taken from the answers of actual participants solitary(prenominal) and then ratings are given . The co operative bank achieved positive ratings and reviews in al intimately all the sectors of assessments .Source RabobankWORKING STARTEGYEven though The co operative bank is an ethical bank but they do charge interests . Because every(prenominal) organization take funds to keep working . One prominent advantage of the The co operative group is that they are not just o perating in banks but also in food retails , housing , res publica and education . So the profits from all the sectors are utilized thoroughly and they try to distribute it equally . Last year profits of around 50 million pounds were earned and about 40% of the profits were distributed to particles , staff and community groups . One of the important line of products 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 company 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 . Twice 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 very much of deals , discounts and money saving offers for the members to enjoy . Not only can one choose from the outstanding financial products of The co operative bank but by simply doing the day to day banking as a member , he can increase 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 smile loan , one can earn 1 point . For nest egg accounts , every 20 pounds held in a Co operative bank , smile or Britannia savings account , one can earn 1 point . For Car/home/pet insurance , for holding an annual Co operative insurance policy , one can earn upto 250 points . For conviction card , every 10 pounds held on or borrowed on Co operative bank or smile credit cards , one can ea rn 1 point . fit 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 awful 2009 . This merger aimed at providing better profit for the share holders and also creating new employment opportunities . This new business was successful in achieving more than 70 million pounds of assets , nine million clients , more than 12,000 employees , more than 300 branches and 20 corporate 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 .ANALYSISLet us do a SWOT analysis on The co operative bank . According to David Jobber , a SWOT analysis is a structured approach to evaluating the strategic position of a business by identifying its strengths , weaknesses , opportunities and threats .StrengthsAccording to the article The Co-operative How to measure its strength , T he co operative has an advantage of the profit bank Smile. This Smile has become a very successful form of internet banking in the recent years . It has increased the demand of The co operative bank very much . Smile is a very famous and in force(p) provider of pensions and insurance . The profits of The co operative banks boomed to 73.4 million pounds in the first half 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 modern computing systems which are very fast and efficient . So this has also improved customer servicing effectively and thus increased customer satisfaction and improving their experience . During the merger with Britannia branded branches , these technological improvements gave customers near four fold increase in outlets to conduct their banking .WeaknessesAccording to The Cooperative Banking exercise Performance and Opportunities byHans Groeneveld , now a days the membe rs find it difficult to manage the organisation due to the increased complexity of the organisation in which the concern group consists of dedicated professionals . It has also been found out that the membership process makes the decision making very s commencement and also prevents innovation and adjustments to new developments . (Hans Groeneveld , 2011)OpportunitiesThe co operative bank provides opportunities to further ones career 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 company 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 venture .ThreatsThe evolution of large scale foreign and unknown markets could endanger the traditional heart of The co operative bank . Recently The co operative bank has started taking a lot of risks involving high profit investments . In one of the move of the bank , it announced plans to transfer work out of North Staffordshire . This move would almost leave jobs of 65 employees under threat . Apparently this move is being made for greater financial control and tougher regulatory requirements.STRENGTHS1 High customer satisfaction2 Rising market shares , dense branch networks3 Stable profits , high rating , low funding costs4 Relatively unaffected by credit crisis5 Contribution to stability and diversity in financial systemsWEAKNESSES1 bugger off more complex2 Difficult to manage due to complexity3 Membership process makes decision making slow4 deadening innovationOPPORTUNITIES1 Further 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 , ecolog ical , social 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 green economy by Pat Conaty , protect the environment is one of the very important aspects of The co operative . These include reducing the gross green house gas emissions by 35 % by 2017 , producing around 25% of electricity using renewable sources of energy , sett ing up a head office that will set new standards in sustainable design , construction and operation . Thus they are also concerned 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 win so many accolades proves it . Some of the awards that it won in 2011 include winner of the Observers Ethical Business Award first place in Business in the Communitys Climate Change Award and Platinum Plus in their Corporate Responsibility Index a leading ranking in the Sunday multiplication Best Green Companies List and winner of The Financial Times award for Europes Most Sustainable Bank.TechnologicalThe bank went through massive technological redevelopment 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 .