Strategic Management Practices for a Bank in Botswana and its Impact on the Bank's Progress

Introduction

The level of operation and managerial approach of the banks are identified to affect the impact of the banks as a major financial institution. This is also a practice in which the banks can establish competitiveness among its wide arrays of competition. It is believed that with the continuous banking processes and management practices, there is a significant result such as the progress in the banking, financial sector, and the entire economy.

Background and Problem Statement

Prior to the impact of globalization and the experience of the financial crises in the latter year of 2008, banks became more aggressive. The usual key drivers of the banks are identified that can facilitate the growth and improvement of the banks. First are the customers who are also considered as the most important element because they can help the banks to achieve their goals. Second are the colleagues who can be the partners of the banks in strengthening the workforce. Third is the community which serves as the external partner towards the development of people. Fourth are the companies and their power of investment. And lastly is the control in which the banking practice is magnified through the application of the strategic management. Because of the key driers of the banks, the country such as Botswana can achieve its own economic growth. This is through developing the people and providing the necessary investment for the Botswana businesses. However, what are the effective strategic management practices of the banks in Botswana and in what ways it can contribute towards the bank’s progress.

Research Aim and Objectives

The main aim of the study is to determine the strategic management practices applicable for the Botswana and their banking institution. In order to relay the ideas associated with the main topic, there are three objectives that needed to be satisfied. First is to identify the current practices in banking sector of Botswana, particularly in its management. Second is to recognize the challenges and the opportunities that are involved in the country’s banking environment. Third is to draw the link of the practices towards the overall goal of the banks in the coming years. In this way, the study can identify the steered strategic management practices and its impact in the bank’s progress.

Literature Review

The banks’ operation in Botswana can be identified along with the improvement in the organization and technologies. From the administration down to the supervision, the banking system is strictly implemented. Banks in Botswana contributes by gaining financial strengths from the recovery and continuous developments. The use of appropriate management and information are effective forms of strategy towards the improvements of the banks. Enhancing the managerial approach can effectively increase the competitiveness of the banks. Because of the recognized robust strategies in banking processes, it is highly suggested that the management approach should also possess the ability to monitor the improvements such as better services for the customers, regardless of where the customers are located. The management and control abilities of the banks must priorities the overall control environment by means of improving the ability of doing business in an efficient and effective way. In addition, by minimizing the errors and providing the necessary responsibilities for the people, who will provide the services, are the viewed results of strategic management. The strategic management is analyzed as the most critical external relations because it includes the research and formulation of strategies that can be disclosed among the leaders to ensure that the Bank’s features and functions are recognized and appropriately implemented. In this way, it clearly shows that there is an improvement in terms of operational platforms and capability to answer the challenges. The strategy of banks in Botswana is more than the aim of establishing strong communication but also the involvement of the African character, to have a successful reforms and future strategic orientations.

Methodology

The applied method in the study is the use of secondary information which can be obtained from Botswana’s banking report in the past years. The data can be captured particularly in the participating banks of Botswana and reviewing the management practices as time evolves. Through comparing the managerial approaches, the assessment can be conducted which can help the study to identify the best asserted strategy in management. In addition, by integrating the banks’ environmental factors and their goals, the study can measure the impact of the strategic management and its practices to satisfy both the competition and progress.

References:

African Development Bank Group (2002) Strategic Plan [Online] Available at: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/ADB_STRATEGIC_PLAN2003-2007E.PDF [Accessed 12 July 2010].

Al-Hawari, M., Hartley, N., & Ward, T., (2005) Measuring Banks’ Automated Service Quality: A Confirmatory Factor Analysis Approach, Marketing Bulletin, Vol. 16, Art. 1. [Online] Available at: http://marketing-bulletin.massey.ac.nz/V16/MB_V16_A1_AlHawari.pdf [Accessed 12 July 2010].

Barclays Bank of Botswana Limited (2008) Annual Report [Online] Available at: http://www.barclays.com/africa/botswana/doc/barclays-ar08-final.pdf [Accessed 12 July 2010].