WORLD UNIVERSITY OF BANGLADESH

Term Paper on: Management of Change

Course Code: HRM_6014

Topic: Leadership and Success of Standard Chartered Bank

Submitted To:
Md. Mobarak Karim

Senior Lecturer

World School of business,

World University of Bangladesh

Submitted By:
Shermin Akther Ruma
Roll No: 2646
Batch : 69th C
Student Of MBA

Submission Date: April 17th , 2022

 Table Of Content
SL No. Topic Page No.
01 Introduction 03
02 Background of Standard Chartered Bank 03
03 Business Growth of Standard Chartered Bank 03
04 Purpose of Standard chartered Bank 04
05 SWOT Analysis of Standard Chartered Bank 04
06 Leadership and Success of Standard Chartered Bank 08
07 Conclusion 10
08 References 11
Introduction:

Standard Chartered Bank (SCB) PLC is an international bank group that is incorporated in the UK
with its Headquarters at 1 Alderman buries Square, London. The group operations are mainly
concentrated in Asia, Africa and the Middle East and its operation is segmented under six regions:
LTK, Europe, Middle East, South Asia, Southeast Asia and the USA. Globally, the SCB group
owns an array of key resources that include:

A network of 600 offices in more than 50 countries. A staff of about 28000 people managing assets
worth 47.65 billion. At the global level, SCB operates with some key strategies that are quite
unique to other banks such as:

To build and grow strong businesses in Middle East, South Asia.

Background of Standard Chartered Bank

SCB has a history of more than 150 years. The name “Standard” stems from the two original banks
from which it was founded-“Chartered Bank” of India, Australia and China and “Standard Bank”
of British South Africa.

Chartered bank was established in 1853 by a Royal Charter granted by Queen Victoria of England.
The main person behind the Chartered Bank was a Scot, James Wilson who had also started “The
Economist” still one of the most eminent publications today. He foresaw the advantages of
financing the growing trade links with the areas in the East, where no other financial institution
was present that time widely

Business Growth of Standard Chartered Bank

The people and businesses they serve are the engines of trade and innovation, and
central to the transition to a fair, sustainable future.
With 85,000 employees and a presence in 59 markets, their network serves
customers in close to 150 markets worldwide. they're listed on the London and
Hong Kong Stock Exchanges.
Across more than 50 countries they’ve built a bank with the diverse experience and
capabilities that set their apart.
Their footprint connects emerging and high -growth markets with more established
economies, allowing their to channel capital to where it’s needed the most.
They’re in a unique position to support the massive shift of capital towards
sustainable finance, which has become a priority for investors, companies, and
individuals alike.

They’re determined to develop significant sustainable finance revenues to grow

their business, and to integrate environmental and social considerations into all
their decision-making, so that they can advance their ambition to become the
world’s most sustainable and responsible bank.

Purpose of Standard chartered Bank

To have a purpose is not enough, you must be your purpose. They’re committed to
driving prosperity and have big ambitions to support global trade and investment
and help companies and customers. To grow and create wealth and play their part
in creating a more sustainable world and provide their customers and communities
with the opportunity to grow financially, while also improving their wellbeing and
quality of life, across their unique footprint in Asia, Africa, and the Middle East.

Their heritage and values are expressed in their brand promise - here for good.

SWOT Analysis of Standard Chartered Bank

Standard chartered bank is one of the leading companies in the banking sector. It has grown
tremendously in its field by finding opportunities. Thus, this makes us curious to know about its
SWOT analysis.
This blog will contain a detailed SWOT analysis of Standard Chartered bank and see what its
strengths, weaknesses, opportunities, and threats were.
SWOT analysis of Standard Chartered Bank analysis its strengths, weaknesses, opportunities,
and threats.
It deals with two factors that are internal and external. Strength and weaknesses are the internal
factors and on the other hand opportunities and threats are the external factors of the bank.
SWOT analysis is a very important framework that enables Standard Charted Bank to
benchmark its business and compare its performance with its competitors.
Strengths are the pillars of any company. Let us now see the Strengths of Standard Chartered
Bank.

1. STRENGTHS OF STANDARD CHARTERED BANK

• Standard Chartered is one of the oldest and largest banks globally which makes it a
trustworthy and valuable group. it is one of the largest trade finance banks in the world
and is ranked #83 in Forbes’s top multinational performer.
• Strong brand presents, high-quality services, and sound financial capability have helped
standard chartered create a reputable brand image.
• The standard chartered bank’s philosophy is based on the following three value behaviors
which are “never settle”, “do the right things’ ‘and “better together”.
Assets of the bank :
It has a total asset of $789 billion at the end of the final year 2020 and this shows that Standard
chartered bank is a financially stable bank.
Finding opportunities in the underdeveloped countries:
The bank has worked rapidly in developing and underdeveloped countries like India and African
and middle eastern local markets to find opportunities for growth and help businesses achieve
their financial products.

Use of emerging markets:

The bank generates 80% of its profit from emerging markets. It provides special financial
services and products by understanding the demand in the market.
Now let us see the weaknesses of Standard Chartered bank.

2. Weaknesses of Standard Chartered Bank

Highly dependent on the south-east Asian economies especially China for most of their profits.

Low Productivity:
In the developed economies there are weak demands, increased taxes, lack of reforms, oil price
boom etc.

Higher Fees
Standard Chartered Bank has more, and higher fees as compared to its competitors, such as
minimum balance fee, ledge fee, etc. As a result, it is losing its customers.

Marketing share
It has less market share as compared to other multinational banks.
This is because Standard Chartered Bank’s marketing strategy is not aggressive. They always
follow defensive and conservative strategies. This may be considered a weakness.
It sometimes faces problems with a market share on ATMs. The customer often complains that
the ATMs are less than other banks.
More Employees are required:
As this is the largest commercial bank in the country, more employees must be employed to
serve the customer properly.
Standard chartered is like the other multinational enterprises that are facing the situation of
shortage of skilled people in the emerging market.
Now let us see the opportunities for Standard Chartered Bank.

3. Opportunities Of Standard chartered bank

• Global expansion in countries across the world.
• Mergers and Acquisitions of smaller institutions.

Increase in trade and business relations:

Increasing trade and business relations and many expatriate populations offer a great opportunity
to expand on foreign soil.

New Customers from online platforms:

In the last decade, Companies have invested a huge amount of money into online platforms.
Standard chartered bank should invest in improving their online presence and give more facilities
online. This will help the company to gain more customers.

Low inflation rate:

Due to the low inflation rate, more stability is brought to the market which enables credit at a
lower interest rate for standard chartered Bank customers.

Customer behavior:
New customer behavior means new trends in the market which provides an opportunity to create
new revenue streams and innovate product rates.
Having threats is common in business, knowing what threats will come and being ready is a
crucial task.
Lastly, we will see the threats for the standard chartered bank.
4. Threats to Standard Chartered Bank
Competitors
There is a highly competitive environment in the banking sector. Banks are bringing new
facilities and services regularly based on the regularly changing customer behavior.

Government Policies on the baking sector:

Every country has different government policies on the banking sector which may lead to
financial loss to the bank.

Liability laws:
Liability laws differ from country to country which may affect the Standard Chartered Bank to
expose themselves to various liability claims given change in policies in those markets.

Supply of innovation:
A regular supply of Innovative products is less compared to the other banking companies in the
market.

Leadership and Success of Standard Chartered Bank

Their Board is collectively responsible for their long-term success, and for ensuring
that the Group is led within a framework of effective controls. The Board sets their
strategic direction, approves their strategy, and takes appropriate action to ensure
that they have the resources they need to achieve their strategic aspirations.

The Board considers the impact of the decisio ns it makes, and its responsibilities to
all their stakeholders, including colleagues, shareholders, regulators, clients and
suppliers, as well as to the environment and the communities where they operate.

Their six Board committees play an important role in supporting the Board. The
committees all consist of non -executive directors, and their Board Financial Crime
Risk also includes three external advisors .
The Board Diversity Policy (‘the Policy’) sets out the approach Standard Chartered
PLC takes to diversity on its Board to ensure that diversity, in its broadest sense,
remains a central feature of the Board. The Policy applies to the Board of Standard
Chartered PLC. The Global Diversity & Inclusion Policy applies to diversity in
respect to all employees.

They have a distinctive footprint and international outlook and a long history of
diverse board membership. All Board appointments are based on merit with each
candidate assessed against objective criteria, with the prime consideration of
maintaining and enhancing the Board’s overall effectiveness.

They strive to maintain a diverse Board recognizing the benefits of having a Board
made up of individuals with a diverse mix of gender, social and ethnic backgrounds,
knowledge, personal attributes, skills, and experience. They strive to reflect the
Group’s aspirations in relation to its employees and its values and to position the
Group as a global leader in these areas. This diversity provides a mix of
perspectives which they believe will contribute to the effective Board dynamics.

To enhance the Board’s diversity, they are committed to:

• increasing the representation of women on the Board with an aim to have a

minimum of 33 per cent female representation.

• adopting an ethnicity aspiration of a minimum of 30 per cent from an ethnic

minority background.

• ensuring that their Board reflects the diverse markets in which they operate.

• ensuring that the Board is comprised of a good balance of skills, experience,

knowledge, perspective, and varied backgrounds.

• ensuring that we consider the Group’s aspirations in relation t o disability,

sexual orientation, gender identity and gender expression.
 • only engaging search firms who are signed up to the Voluntary Code of
Conduct for Executive Search firms; and

• reporting annually on the diversity of the executive pipeline as well as the

diversity of the Board, including progress being made on reaching the
Board’s gender and ethnicity aspirations.

Conclusion:

In retrospect of the marvelous growth of consumer banking revenue over the last 20 years and
contemplating the intensity of competition yet to come, it is crucial for SCB to rethink its strategies
and marketing plan to sustain the growth consumer banking revenue. Correspondent banking
service providers domiciled in Bangladesh are expected to be fighting for a bigger pie, as the
growth prospect of the country’s correspondent banking business is limited. One of the ways to
achieve that objective is to maximize consumer banking revenue generated from local clients and
introduces more local products.

At the same time Standard chartered bank must have to consider the consumer mind setup. As a
multinational bank customer want more benefit from them then other 3rd generation bank. So
instead of making profit only they should care about the customer as well. They can start many
new savings products like millionaire scheme. But here problem is that all these schemes is very
costly. So, they should introduce something for the middle class, but still SCB continuously
working with upper class and upper middle class.

When these types of facility are come on front then and only then Standard Chartered Bank can
compete with other banks like HSBC, Prime Bank, Dutch Bangla Bank. Customer is the heart of
the bank and if SCB can make them satisfied and make them return to the bank with their deposit
it will become the largest profitable bank in Bangladesh within a short period of time.
References

https://www.sc.com/en/about/our-people/

https://www.sc.com/uk/insights/what-makes-a-great-leader-2/

https://www.sc.com/en/investors/financial-results/annual-report/