Strategic Choice and Evaluation

0 Comment

Every business organization requires growth for its sustainability, profitability retention and increase in the market share. Growth strategies need to be constantly formulated for the retention of the organization in the existing market and also for its survival. The author of the study will deal with the various facets of growth strategies, which affect the survival of the business enterprises. It will deal specifically with the growth strategies to be recommended for Davivienda bank, which is one of the most esteemed banks of Colombo. The study will also highlight the various alternative growth strategies that have the potentiality of generating huge amount of revenue and also maintain its goodwill in the banking industry. Finally, the studies will conclude with recommendations, which provide the bank an opportunity to expand on a large scale without having to implement time consuming and expensive methods. Overview of Davivienda Bank Being one of the most esteemed and well established banks of Colombo, Davivienda has been able to create a niche for itself in the banking industry and also gain the trust of the customers at the same moment (Davivienda, 2013a). Davivienda is a Colombian bank, which was established in the year 1972 and is known for providing credit to the individuals, organization and also in the rural sector (Davivienda, 2013b). It is regarded as a mortgage and saving banks, which has diversified its business of credit card portfolio and also retail banking services (Davivienda, 2013c). The essence of the bank is that, it provides banking services to the rural sectors and to various other corporate organizations for the betterment of the entire society. Presently, it has more than 21 percent of markets share in the banking industry in the credit card portfolio section. It is also regarded as the third largest financial institutions in Colombia itself. Alternative Growth Strategies its Significance for Davivienda Bank The decline in the sudden growth rates of the varied banking organizations in Colombo has had a dampening effect on the Colombian economy and also on the neighboring countries. The sudden decline in the growth rate of the Columbian banks has led to decline in the export –import growth rates also simultaneously. Therefore, growth strategies have become essential for the implementation and expansion of the banks on a large scale and offering tailor made financial products for each of the crisis and situations (Perkowski, 2007).The sales of financial products have been declining worldwide because of the sudden economic slowdown, which has made the customers cautious about investing and dealing in securitization, mortgage portfolio etc. To combat the ill effects of the economic slowdown, Davivienda banks need to adopt certain marketing strategies, which had been instrumental for the growth of other banking institutions. Firstly, the need of the growth strategies needs to be identified with the current situational analysis of the internal and external environment (Mills, 2001). After the assessment of the external and internal environmental analysis, the various forms and needs of the alternative growth strategies of the banks need to be identified and evaluated (Rice