Introduction

ICICI Bank ( industrial credit and investment corporation of India)

ICICI bank was founded in the year 1994. It is a banking and financial services company. It has
it’s corporate office in Mumbai, Maharashtra and registered office in Vadodara, Gujarat. It offers
a wide number of financial services and banking products for its retail as well as corporate
clientele. This is done through various channels and subsidiaries in sectors of investment
banking, non-life insurance, life insurance, asset management and venture capital. Currently the
bank has its presence in 19 countries. It has successfully marked its place as the top four private
sector banks in India and has its subsidiaries in Canada and United Kingdom and its branches in
United States, Qatar, Bahrain, Singapore and several other countries. It takes pride in having
more than 5000 branches and more than fifteen thousand atms. Its total assets are said to be
worth 140 billion US dollars and revenue to be 13 billion US dollars so far.

A.C. 1.1
Importance
of external
factors
affecting an organization

Today, every organization has to deal with a number of challenges. They have to strive hard to
maintain their position in the market. Any organization’s success and stability is largely
dependent on its ability to swiftly recognize and respond to changes in the external environment.
We are all aware that change is inevitable as a result it is the organization’s flexibility that
determines how effectively it adapts to these changes. Every organization must conduct an
environmental scan time to time to improve its marketing and management strategies, planning,
and also assess its strengths and weaknesses to know its market position. It’s vital for an
organization to control its external factors in order to achieve its goals.

 Socioeconomic factors
Globally there are constant changes taking place. Organizations have to always keep up
with the changes and think about the well-being of its people at the same time. These
socioeconomic factors directly determine the dynamics as society is likely to experience.
Organizations are expected to generate employment. Not only the organizations but also
the society and its consumer face hurdles which they have to overcome. Along with this,
there is an increasing pressure on organizations to create prosperity. If the organization
works towards achieving social and economic goals than it’s likely to build a better
market. It’s not an easy task maintain a steadiness across all aspects. However, effective
strategic planning will possibly contribute towards the wellness of the organization.
https://smallbusiness.chron.com/socioeconomic-factors-affecting-small-businesses-73234.html

 Clients
Clients are the lifeblood of any business and play a central role while forming company
policies and strategies. Nowadays, it’s very difficult to predict consumer loyalty and
behavior as there are multiple options in the market unless you are a monopoly in the
market. To gain consumer loyalty, the organizations must provide quality service and
products along with exceptional follow-up support. Conducting surveys helps to
understand what are the present demands and needs of the consumers to prepare well for
the future.

 Recession
Recession is defined as a general reduction in ongoing economic activities as a result it
has a direct impact on employment and GDP. Recession affects all kinds of organizations
whether big or small largely due to credit conditions, fear of uncertainty and reduced
 demand. Larger businesses especially take a blow when turning over their debts which
are reliant on to finance continuing operations. In their strategic planning organizations
must also be prepared with an emergency plan at times of economic uncertainty.
Organizations must strategize to diversify their revenues, reduce particularly their
discretionary expenses, plan a healthy emergency fund, managing dents is very crucial so
pay it while you have continuous cash flow. Following these strategies will provide
some security to the organization at times of crisis.
https://www.cimaglobal.com/Documents/Employer%20docs/R268%20Economic%20recession
%20final%20V2.pdf

 Finance
For any organization to run effectively it has to accomplish certain conditions and finance
is an integral part of it. Without effective financing, all efforts will be futile.
Organizations should be well aware of the current situation of the market. The strategic
plan of the organization must be prepared keeping in mind everyday decision making
with regard to finances so as to there is no wastage of the company funds. It should not
only contribute to the well-being of the company but also to the economic development
of the society.

 Competitors
Any organization is going to have some competition. You can have a direct competition
where your organization and other companies are selling the same product or services.
Unless, you are a monopoly in the market. Organizations can have some control over
competition through effective strategic planning. Companies can make the best use of
unique selling points (USPs) by focusing on customer benefit, customer service, branding
of the company. Another effective strategy is to invest in your business by training
employees to work smart by using various tools, constantly learning about customer
needs. Expansion of the business is also another useful way to stay in the competition as
by doing this you are increasing your market share. Stakeholders must consider these
points while forming their strategic plan.
A.C. 1.2 Needs and expectations of stakeholders of an organization

A stakeholder is any person who has a ‘’stake’’ in the well-being of the organization. It is a
person who can affect or get affected by the workings of the organization. Stakeholders can be of
two kinds- primary stakeholders (who have direct interest in the company) and secondary
stakeholders (who have indirect interest in the company). Each of these has internal and external
stakeholders. It’s very important to recognize and categorize all the stakeholders in your project
upfront. Missing out important stakeholders and their crucial functions can be a project killer and
direct threat to the project. The project manager holds a very significant responsibility to provide
direction, leadership and overall support to its team members. It is imperative that timely input is
taken from all the stakeholders as the stakeholders’ needs, decisions and inputs will lead the
project to a victorious conclusion. However, managing stakeholders is a big task and needs to be
addressed carefully. If there are contradictory demands and interests among stakeholders than it
can make decision-making very taxing and all the operations will be carried out slowly.
https://smallbusiness.chron.com/needs-expectations-stakeholders-influence-programs-plan-
36119.html

Top-level management will direct the approach and growth of the organization. Without these
top level stakeholders it will be very difficult to obtain the needed resources. These top-level
stakeholders clear the pathways of all barriers in order for everyone to succeed in their allotted
tasks. The importance of each stakeholder in the organization will further determine the extent to
which the organization will accommodate the stakeholder in its strategic planning and actions.
The only stakeholders that the organization should ignore are the ones with little interest in their
operations. However, the project manager should keep a record of all the stakeholders and their
activities in order to successfully adhere to the planning process and at the same time manage the
rising conflicts among the stakeholders.

Table 1.1 stating internal and external stakeholders of ICICI Bank

INTERNAL STAKEHOLDERS EXTERNAL STAKEHODLERS

Chairman Customers
Regional Chief Executive Manager Suppliers
Chief Financial Officer Competition banks

Executive Director Government

 Independent Non-Executive Director Communities
Head of IT Shareholders – below is the list
Regional Heads Life insurance corporation of India
Key staff Capital Research and Management Co
Project Managers Aditya Birla Sunlife AMC Ltd
Line Managers SBI Funds Management Pvt, Ltd
Dodge and Cox
HDFC Asset Management

A.C. 1.3 Major changes taking place in the external environment that will affect strategy

PESTEL Analysis:

PESTEL analysis can be used to understand the major changes taking place in the external
environment. It is a tool to examine the macro environment of the organization. It presents
comprehensive details on the operating challenges an organization faces.

 Political Factors
For ICICI bank political factors have played a vital role in determining various dynamics
that can affect its long-term productivity in a certain market. ICICI bank operates in
money center banks in a number of countries and tends to expose itself to various
political threats and risks. The unbalanced political environment can jeopardize future
investments due to uncertainty of the market. High level of corruption in the country
especially when it comes to regulation in financial sector can severely affect the working
of ICIC bank. If a country’s legal framework keeps changing than it will create barriers
 for contract enforcement. Also, the bureaucracy and constant government interference in
money center banks can hinder the smooth functioning of the bank. ICICI bank should be
cautious while labeling products and other necessities in money center banks. Poor
administration and coalition politics will deeply influence the working of the bank. In
order to attain success in such a dynamic banking industry ICICI bank will have to
diversify methodical threats of the political environment. However, ICICI bank has
agreed to the policies made by each government in order to function successfully and
effectively.
https://casemba.com/ashok-som/icici-bank:-path-to-globalization/pestel-analysis.php

 Economic Factors
Being one of the leading private banks in India, ICICI bank takes pride in having a
secured economic strength. Economic factors such as inflation rate, savings rate, foreign
exchange rate, economic cycle, interest rate all determine the aggregate investment and
demand in the market which is very crucial for the banking industry. ICICI bank can use
these economic indicators to determine the growth curve. Along with this, continual
intervention of the government in the free market and changing financial policies can
affect the even functioning of the bank. Other external factors like the steadiness of the
host country currency like Singapore, Bahrain, and Hong Kong, Sri Lanka may lead to
reduced profits. Discretionary income and unemployment rate in the country can also
lead to unexpected results which may not work well for the organization.

 Social Factors
Every society’s culture and its working have an impact on the culture of the organization.
ICICI tries hard that to ensure that in every society in which they serve is given equal
chances to benefit from the organization. ICICI functions in a vibrant environment where
the nature of banking is different in every region it operates. Shared attitudes and beliefs
here play an important role in how ICICI bank understands its clients and how they
intend to market the message to consumers of money center banks. However, ICICI bank
has been relatively adaptive in its functioning considering the external social factors.
ICICI bank also fulfills its corporate social responsibility in the sectors of primary health,
 elementary education, skill development and sustainable livelihood, ICICI academy for
skills, research and policy advocacy etc. however, the class and power structure in the
society along with skill level and demographics of the population can serve as blockades
to reach its ultimate potential.

 Technological Factors
Today technology is developing at a rapid speed. Constant development of novel
innovations in technology has driven the working of the organizations. All the needs are
fulfilled just a with a miracle click. If the organization doesn’t keep up with the updated
technological it will slow down the work process and the organization won’t be able to
cope with it. ICICI bank keeps itself at top-notch when it comes to its technology. The
bank uses special mechanisms in order to advance their operations. Along with this ICICI
bank has invested in ‘’clean technology research’’. Also, by shifting to virtual banking
concept where all the services are available on mobiles and computers ICICI bank has
attracted customers to non-branch banking world. This digitalization of transactions has
improved the overall customer service. However, if the rate of technology diffusion is
high than ICICI bank will have to buckle up its technology sector.
http://fernfortuniversity.com/term-papers/pestel/nyse4/1045-icici-bank-limited.php

 Environmental Factors
Different markets have their own environmental policies and regulations this affects the
profitability of ICICI banks in those markets. Even within the same country different
states will have their own environmental standards. Laws considering climate change and
environmental pollution need to be carefully evaluated. ICICI bank fully acknowledges
the present trends in climatic change and commits itself to drastically reduce its carbon
footprint by resourcefully recycling its waste as well as maintaining energy efficiency in
the banks. ICICO bank also promotes ‘’green banking’’ among their customers. They
also take measures in paper conservation for their everyday activities. They also promote
two-sided printing whenever possible and conduct webinars for meetings and training
programs to reduce the need to travel.
 Legal Factors
Every organization should be prepared for ever changing legal framework especially in
the banking industry. Whether its laws regarding intellectual property rights, patents,
discrimination laws, employment laws, laws in the health sector, environmental, laws
concerning consumer protection and data protection whichever sector it is laws are bound
to change and there is no certainty to this , ICICI bank is steadfast to adapt to changes in
the legal system. ICICI bank has however devised mechanism for recovery processes in
case of any unforeseen change in the system.

A.C. 2.1 use appropriate tools to analyze the effects of current business plans ::

Porter’s Five Force Analysis:

Porter’s five forces is a strategic tool that helps to establish the competitive position of an
organization. All the five forces of the model help the business planners to understand the
potential of the organization within the market. However, the strength of these forces
differs across industries.
Threat to new entrants

The economy of scale is not easy to accomplish where ICICI bank operates. This makes
production pricey for new entrants. In the banking industry, product differentiation is
high where firms don’t sell standardized products only. Also, the capital required is very
high and finances become a major barrier for new entrants. Further capital outlay is also
high because of research and development. In addition, government regulations in the
banking industry mandate strict licensing before the company joins the market. All these
points make the threat to new entrants for ICICI bank a weak force. However, ICICI bank
can gain from its economies of scale and give a fight to the new entrants. ICIC bank
should also focus on innovation and build strong brand identification.

https://casemba.com/ashok-som/icici-bank:-path-to-globalization/porters-analysis.php

Bargaining power of suppliers

The industry in which ICICI bank operates there are more suppliers than buyers. This
clearly indicates that suppliers have lesser control over pricing and this makes bargaining
power of suppliers weak. Also, the products that these suppliers provide are less
innovative; more standardized and have low switching costs. Therefore, this makes it
easy for ICICI bank to change suppliers. The industry in which ICICI bank is functioning
is an essential client for its suppliers. As a result, the suppliers have to provide reasonable
pricing. However, ICICI bank can tackle bargaining power of suppliers by buying the
materials at a low cost. It can also several suppliers from different geographical locations.
As ICICI bank is an important customer to its suppliers it can build strong relationships
where both the parties benefit.

Bargaining power of buyers

The numbers of suppliers are a lot more than the number of firms producing these
products. This simply means that here the buyers have very few options to choose from
and do not have control over the pricing. As the product differentiation is very high, the
buyers find it difficult to look for an alternative firm. There is also a pressure to purchase
at lower prices as the income of the buyers is relatively low. Here, the buyers are less
price sensitive because the quality of the products matters. Nevertheless, ICICI bank can
focus on differentiation of products to attract the buyers. It should also focus on building
a larger customer base by taking the cost advantage and selling at lower prices.

http://fernfortuniversity.com/term-papers/porter5/analysis/1045-icici-bank-
limited.php#:~:text=Porter%20Five%20Forces%20is%20a,in%20Money%20Center
%20Banks%20industry

Threat of substitute products or services

In the industry in which ICICI bank operates there are few substitutes for the products
and services. Those few substitutes which are present are also produced by low earning
industries. This clearly means that there is no ceiling on the utmost profit that these firms
make. Also, some of the substitutes that are available are either of top quality and very
costly. In comparison to this, the firms which operate alongside ICICI bank sell at a low
price with satisfactory quality. ICICI bank can focus on providing greater quality
products at a lower rate. It can also focus on ensuring its clientele that their products are
unique and aim to better understand the needs of the customer.

Competitive Rivalry
The numbers of competitors in the industry are considerably few. Also, those that exist
are large in size. So the banks in the industry won’t make moves without being
unobserved. This industry is growing every year and is expected to continue. Also, the
product differentiation is high. So, the firms won’t attempt to attract consumers of one
another as they all offer unique services. Nevertheless, there are some strong forces of
competitive rivalry too. as the competitors have larger market share they are likely to get
involved in competitive actions in order to become market leaders. Also, the fixed costs
are high which makes the firms to push to full potential. This means that the firms have to
decrease their prices when the demand relaxes. Mainly, the barriers to exit are very high
in the banking industry as large investments are involved and strict government
regulations. ICICI bank should focus on gaining new customers rather than attracting the
ones from rival firms. Also, it should invest in conducting extensive market research to
have a better understanding of the supply-demand.

A.C. 2.2 Review the position of an organization in its current market

BCG Matrix Analysis

BCG matrix is a strategic management tool which was developed by the Boston
consulting group. It helps in examining the position of a strategic business unit and the
prospective it has to offer.

https://www.businessnewsdaily.com/5693-bcg-matrix.html
 Stars

The business products or units that have the finest market share and generate high revenue
are called stars.

The financial services strategic business unit is a star for ICICI bank because it truly shows
potential in the coming future. ICICI bank makes a huge amount of income from its
strategic business unit. Since the strategic business unit looks prospective, ICICI bank
should try to acquire other firms as this will help it earn more profits. The number 1 brand
strategic business unit is also the product that causes highest sales among its product
portfolio. The growth in this market is relatively high as the consumers are demanding for
the product and products similar to these. The second brand strategic business unit is that it
also holds 20 percent market share in this grouping. Along with this it is also the market
leader in this group. And, the overall growth rate is expected to remain high. ICICI bank
should use its present products to break through the market by improvising on its
distributions and reaching untouched areas.

https://www.case48.com/bcg-matrix/3259-ICICI-Bank-Limited

Cash Cows

Cash cows generate more revenue than it consumes. They are business units or products that
have low growth prospects and high market share.

The supplier management service strategic business unit of ICICI bank is a cash cow as it
has been in function for over years and has managed to earn momentous amount of revenue
to the firm. Even though the market share for ICICI bank is high the overall market is on its
last legs as firms don’t outsource their suppliers and manage it on their own. ICICI bank
shouldn’t further invest in this. The number 3 brand strategic business unit is a novel
product that takes pride in owning 25 percent of the market share. In addition, ICICI bank is
also the leader in this group. However, the overall market share seems to be waning in the
last few years. But, ICICI bank still has a chance to grow by investing in R and D and
renovating the brand. This will also help to turn the cash cow into star. Along with this, the
international food strategic business is also a cash cow as this business unit has a high
market share of 30 percent but unfortunately people seem to be less inclined towards
international food. ICICI bank should try to keep this unit under operations or else it will
turn into a dog.

https://premierfullpac.netlify.app/bcg-matrix-on-icici.html

Question Marks

These units of a business have a low market share but high growth prospects. They consume
a lot of cash and bring less in return.

The local foods strategic business unit of ICICI bank is a question mark. ICICI bank has a
low market share in this category and the latest trends show that more and more people are
moving towards local foods. ICICI bank should invest in research and development to come
up with innovative ideas and help to turn this into a cash cow. A particular strategic business
unit which is a part of the market is growing rapidly. However, this unit has incurred losses
in the last few years. ICICI bank should part from it to prevent future losses. The
confectionary strategic business unit is also a question mark as this business is growing at a
drastic speed. However, ICICI bank has a low market share in this growing market. ICICI
bank should push hard to make this product visible on its outlets.

Dogs

Dogs are those business units or products that have low growth rate as well as low market
share.

The plastic bag strategic business unit of ICICI bank is a dog. This business unit has been in
loss for the last five years. Also, the rising environmental concerns won’t let it flourish.
ICICI bank should divest from this and save its resources. The synthetic fiber business unit
is a dog. The market share for such products is continually declining due to which the bank
has been facing losses for the past 3 years.

https://energyincredible.weebly.com/blog/bcg-matrix-on-icici#:~:text=Marketing
%20Strategy%20of%20ICICI%20Bank,with%20respect%20to%20the%20competition
 Lastly, the artificially flavoured products strategic business unit is also a dog. This product
was launched with the belief that it would grow. However, due to rising health concerns
people are now shifting to organic products. There is definitely shrinkage in this market.

A.C.2.3 Evaluate the competitive strengths and weaknesses of an organization’s

current business strategies

SWOT analysis

SWOT analysis is a strategic planning tool and is used to assess the situational analysis of
the organization. It examines the strengths, weaknesses, opportunities and threats. It helps to
assess internal as well as external strategic factors.

 Strengths

As one of the top banks in the industry, ICICI has various strengths which help it to flourish
in the market. These strengths not only assist it to protect its current position in the market
share but also to break through new markets. ICICI bank has an amazing performance in
entering new markets. This growth has helped ICICI bank to prosper profits streams and
 branch out the economic cycle risks. Over the years, it has built a trustworthy and a strong
distribution network. It has built such a dealer community culture where the dealers also
advance in the sales team to make maximum sales. It offers smooth and efficient banking to
NRI’s which is why it has become one of the most sought out banks for consumers in the
global markets. The organization has managed to attain high levels of customer satisfaction
and also a good brand image among potential new customers. It marks its presence over 19
countries globally. It has been recognized and awarded for its corporate social responsibility
initiatives. It has also successfully incorporated complimentary organizations. Moreover, it
has flourished in the banking industry over decades marking their name in the industry.

https://www.mbaskool.com/brandguide/banking-and-financial-services/2024-icici-
bank.html#:~:text=SWOT%20Analysis%20is%20a%20proven,the%20banking
%20%26%20financial%20services%20sector

 Weakness

ICICI bank needs larger investment in latest technology. Given the fact of it branching out
into untouched geographical areas it needs more revenue to integrate the upcoming
processes. Although ICICI bank has a strong investment in research and development it is
not still competing with the market leaders when it comes to advancement and innovation.
Because the organization couldn’t deal with the challenges put forth by the new entrants it
has lost a certain amount of market share. To tackle such challenges it needs to build a
strong internal feedback system. In comparison to other firms, ICICI bank has a relatively
high attrition rate. Also, it has not been very successful in working with different work
cultures. It also has a comparatively high rate of missed opportunities. Not to forget, in the
past few years certain controversies of money laundering and debts has damaged the
company image.

 Opportunities

Since the last few years, ICICI bank has made an enormous investment in the online
platform. This has definitely channelized new sales. In the coming years, ICICI bank can
use this opportunity to understand their customers better and serve their needs more
efficiently. Reduced shipping prices can lessen the cost of transportation by this ICICI bank
 can enhance its productivity. It should also branch out more in rural areas as not many
money center banks have done this. This will be an opportunity for the company to build
goodwill among the people by generating employment and also help them to start their
businesses. Another strong opportunity for ICICI bank could be that its core competencies
can drive success in other fields too.

https://www.brandlanes.com/blog/swot-analysis-of-icici-bank/

 Threats

ICICI bank shouldn’t make any changes in its online platforms as this directly bring a
change in consumer buying behavior and will pose a threat to the supply chain. Significant
shortage of capable workforce can pose a threat to the growing profits of the company.
Another possible threat is that ICICI bank can face lawsuits as it operates in different
markets and the legal framework is not steady. Growth in competition with strong players
coming in has put a pressure on the overall sales of the organization. Low maintenance of
products and services will lead to decreased customer satisfaction.

A.C. 3.1 Use modelling tools to develop strategic options for an organization.

Ansoff’s Growth Matrix

Ansoff’s growth matrix is a marketing business model and it helps to determine the market
growth strategies of an organization. This tool suggests that growth of a business will
depend on whether it markets existing or new products in new or already present markets. It
 is a very effective tool for examining the growth of the organization as well as to provide
direction.

https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-
marketing-strategy/

 Market penetration

Market penetration is when the organization focuses selling existing products into existing
markets. It seeks to boost the market share of the existing products. This can be attained by
introducing better pricing strategies, marketing, sales promotions etc. It also means the
market needs to be restructured by driving out potential competitors. Also, existing
customer usage is enhanced. However, this would require a strong promotional campaign.
Here the focus of the organization is merely on the products and markets which it knows
very well. ICICI banks provide intense training to its current employees in order to enhance
productivity and overall management. ICICI bank operates in high growth market so it
needs to maintain its market share very well. Still, new strategies should be implemented
with time. ICICI bank should also boost its risk management mechanisms.

 Market Development

Market development is when an organization aims to sell its present products into potential
new markets. There are a number of ways to achieve this by venturing into new
geographical markets and by entering into new distribution channels. However, when an
organization enters into new market it needs to develop effective pricing strategies to attract
customers and to create new market shares. Nonetheless, market development is more at risk
than market penetration because here the targets are new markets which are yet to be
understood and studied. ICICI bank should aim to develop money centre banks by
influencing across the border opportunities. Even though it has marked its place in 19
countries it should consider branching out in European markets. It should also focus on long
term trade and investment projects in emerging countries. So far ICICI bank has functioned
very well in commercial regions so launching into rural areas will also be a smart move for
the organization.
 https://www.mindtools.com/pages/article/newTMC_90.htm

 Product development

Product development is when an organization aims to launch new products in present

markets. The organization now has to create and alter products to appear attractive in the
existing market. Product development happens regularly and is common as organizations
need to innovate to succeed in the existing markets. This required investment in research
and development and organizations have to carefully study changing consumer needs. This
strategy will work for ICICI bank because they keep themselves updated with consumer
needs. ICICI bank should boost profitability by innovating their services and products and
also strengthen their customer relations. With an appropriate approach towards digitalization
ICICI bank can attain its objective in prospective years.

 Diversification

Diversification occurs when an organization introduces new products into new markets.
This is very risky as the organization is moving into new markets without much experience
in it. Here, organizations are approaching opportunities which are not yet explored.
However, the organization must be very clear as to what it wants from this strategy and
closely assess its risks and outcomes. However, if worked well than marketing strategy of
diversification will be highly profitable. ICICI bank will have to invest heavy in R and D to
create innovative products. It can also aim to take its online services at a higher level which
will be more easily accessible to consumers. Nonetheless, ICICI bank shouldn’t go for
diversification if the capital is rigid and market economy isn’t doing well.

Mintzberg Strategy

Henry Mintzberg illustrated five visions for strategy for organizations and called them 5 P’s
of strategy i.e. plan, pattern, perspective, ploy and position. As per Mintzberg coming up
 with a good strategy is not an easy task. But, one can atleast include various aspects and
approach each aspect with a different perspective.

 Plan

A plan has to be developed before actual actions are taken and it’s vital that the chosen plan
is pursued consciously and efficiently. Goals and objectives of the organization can be
attained only with a good plan. ICICI bank should focus and invest in training programs for
its management. Skilled employees are likely to yield higher productivity and increased
customer satisfaction. Also, the strategic planning processes should be simplified to achieve
the objectives of the organization.

 Ploy
Organizations can also use ‘’ploy’’ as a strategic choice. Organizations can implement a
plan that nobody anticipated especially a plan that potential competitors never projected.
ICICI bank can accelerate growth by increasing market share. Also, strategies to instill
better consumer experiences can be profitable to the organization. ICICI bank should also
carefully study the market structure and keep updated with the demands of its clientele.
 Pattern
Patterns are about strategies that have been put in action earlier. Some strategies may have
achieved the objetctives while some are still working on it. Patterns are accepted without
any unfairness by all. Once you identify the patterns in the organizations you will be better
equipped to incorporate their strengths while developing the strategy. ICICI bank should
invest in technologies that will help it to analyze enormous data swiftly as well as process
the contents efficiently. Also, in the past ICICI bank was blamed for being involved in
money laundering and other illegal monetary acts. So, ICICI banks should also invest in
high tech systems to maintain their financial records and see that there are no loopholes in it.

 Position
This is about the positioning of the organization in the market. Strategic position helps in the
competitive environment and to hold a solid place in the market. ICICI bank has been in the
market for decades and has recognized its threats and competitors very well. It should also
 work on its weaker aspects so that its position in the market is not affected. However, ICICI
bank should continually work on better strategic policies.

 Perspective
Strategy is also about a large perspective. Perspectives of all the employees as well as their
thought patterns are a precious source of information in any given organization. The top
management of ICICI bank is fully focused on implementing the strategic plan after having
a complete review from its team. It also aims to improve its overall productivity.

However, while choosing strategy, a choice has to be made whether the strategy
management process will be emergent or deliberate.
Deliberate strategy focuses on top-down approach. Here the management mentions all the
actions that the organization should take to achieve its goals. In order to flourish ICICI bank
should consider all the economic factors such as inflation rate, savings rate, foreign
exchange rate, economic cycle, government intervention, changing financial policies,
unemployment rate etc in order to attain its desired goals. The management should also
ensure that the actions will be consistent and reliable. Lastly, it is crucial to consider the
major external factors which are unpredictable like the changes in political and legal
frameworks. Also, all the members of the strategic planning team should be fully aware of
the proposed strategy outcomes.
Emergent strategy is a bottom-up approach. It is when the management does not put its plan
into action. Here, the members of the team won’t be able to conceive the strategies of the
top management.
https://www.toolshero.com/strategy/5-ps-of-strategy/#:~:text=He%20calls%20them%20the
%205,implement%20a%20more%20effective%20strategy.&text=Competition%20is
%20always%20a%20factor,strategies%20only%20aimed%20at%20competitors

A.C.3.2 Develop a comparative understanding of activity from organizations in the

market
Comparison analysis is used to evaluate two organizations in the same market. it allows an
organization to examine industry results and to understand overall performance of the
 organization. In comparative analysis different aspects are evaluated in the present market.
ICICI needs to do a comparative analysis to understand its position in the market. Here, we
have chosen HDFC bank as both ICICI and HDFC banks give each other a cutthroat
competition.

Table 3.1 providing a comparative understanding between ICICI bank and HDFC bank

AREA ICICI BANK HDFC BANK

Company type Private sector company Private sector company established
established in the year 1994 in the 1994
Industry Banking, financial services Banking, financial services
Significant NPS trust, life insurance Nbanks mutual funds, central
Shareholders corporation of india government
Marketing plan Target marketing, customer Technologically advanced banking,
acquisition, relationship privilege pricing, wide-ranging
management, database marketing, solutions, easy banking, educational
product promotions, launching benefits
innovations, household benefits ,
online banking, use of technology
to tract different customer
segments, smooth NRI banking
Marketing ploy No extra charges for online No extra monthly charges applied,
banking, availability of account in free credit card pricing, earn points
different currencies , touchpoints on account balance
in transactions
Corporate social Primary health, elementary Rural development, skill
responsibility education, skill development and development, promotion of
sustainable livelihoods, ICICI education, health and hygiene,
academy for skills, channel and financial literacy
technology architecture, financial
inclusion, outpatient healthcare
project
Products Credit cards, banking, insurance,
Retail banking, private
 mortgage loans, private equity,
private banking, wealth management
banking, credit cards, wealth
management, corporate
banking, investment
banking, mortgage loans,  finance
and insurance

Weaknesses Decline in net profit, lacks in

Stringent policies for recovering
loans, debts. High service charges, aggressive marketing plans, shares
are often fluctuating, focuses mostly
on affluent clients,
Total assets US dollars- 170 billion
US dollars – 140 billion
Revenue US dollars- 16 billion
US dollars- 13 billion

A.C.3.3 Create options to form the basis of future organizational strategy

Benchmarking Process

Benchmark is the reference point which the organization uses to evaluate its own performance
against the performance of another organization. It is critical for continuous improvement.
Benchmark compares different products, operations and processes. It is a powerful tool to
understand the gaps between the organization’s processes. Benchmarking is a potential tool for
ICICI bank to glean approaches that can lead to better performance. Step by step benchmarking
will assist ICICI bank to reach its full potential and enhance the overall productivity. ICICI bank
can also assess its strengths, weaknesses and threats and implement changes that will yield
noteworthy improvements.

https://smallbusiness.chron.com/strategic-benchmarking-10076.html#:~:text=Benchmarking
%20is%20the%20process%20of,in%20your%20industry%20is%20doing.&text=Strategic
%20benchmarking%20takes%20a%20long,future%20strategies%20of%20competing
%20companies
Benchmarking can be of two type’s .i.e. internal and external. Internal benchmarking attempts to
compare processes and performance to other units of the business like different teams, groups
etc. internal benchmarking will be suitable to continuously improvise within ICICI bank.
However, here it will not reflect on its competitors. External benchmarking compares processes,
performance and practices against other organizations and is sometimes known as competitive
benchmarking. It is done to evaluate ICICI bank’s performance against its potential competitors
in the industry. Such evaluations are important to bring competent changes in the organization
and should be done regularly especially when there is cutthroat competition. Strategic
benchmarking compares business models, strategies and approaches. It helps ICICI bank to
strengthen its strategic planning. ICICI bank uses this to understand which strategies are adopted
by successful organizations or business teams and evaluates it with their own strategic planning
and recognizes ways to become more competitive.

Continuous Improvement Process

ICICI bank continuously improvises and alters its processes, services and products. This involves
two types of improvements namely continuous and dramatic. Continuous improvement is sought
to be incremental and involves only minor adjustments to gain huge advances. Dramatic
improvement comes only by renovating the entire work process. ICICI bank always encourages
innovation. Continuous improvement process is an important tool and can prove to be beneficial
in a short span of time without huge investments.

 Teamwork- all employees work together and solve problems collectively

 Customer satisfaction- fewer errors lead to high quality work
 Job satisfaction- growth fostered environment and continuous improvement
 Overall productivity- effective work results in higher productivity

https://help.icicibank.com/Loans/Mortgage-Loans/2132259393/What-is-external-benchmark-
rate-of-ICICI-Bank-Limited-ICICI-Bank-for-floating-interest-rate-Home-Mortgage-
Loans.htm
A.C.4.1 Propose a suitable structure for a strategy plan that ensures appropriate
participation from all stakeholders of an organization

When it comes to strategic planning, high involvement from all the stakeholders of the
organization yields productive outcomes. Stakeholder involvement in strategic planning is
crucial. The common way of involving stakeholders is through effective communication and it
should be purposeful and consistent. All the stakeholders need to be aware as to where the
organization is heading and should assemble their work in that direction. Strategic roadmaps
should be developed and given to all the stakeholders to constantly remind them of the
organizations’ mission and vision. Each stakeholder is important and unique in its contribution to
the organization. Also, their accessibility, readiness to contribute and their individual capacities
have a crucial impact on the desired outcome. Strategic planning and review sessions shouldn’t
be limited only to top management. The best approach would be to gather feedback, suggestions
and information from all stakeholders by conducting stakeholder assessment. A stakeholder
communication planning sheet also tells us whom to communicate, why to communicate and
how often to communicate. It’s also important to identify those stakeholders who are least
interested in the strategic planning and betterment of the organization as they could be potential
loopholes to achieve organizational goals. A roadmap works very well to help us know the
options available to reach to our destination. At ICICI bank, the ultimate goal is to be familiar
with every stakeholder and also to understand the needs and wants of their consumers. ICICI
bank also aims to engage employees in strategic planning to help develop ownership.

https://www.researchandmarkets.com/reports/4558598/icici-bank-ltd-strategies-financial-outlook

Business case:

 Description of the business

 Explain the need for strategic planning
 significance of the plan implementation
 repercussion if the plan is not executed

Plan implementation
  state the tasks that need to be completed before implementation of the actual plan
 important tasks to execute the strategic plan
 who hold the authority to cancel or move ahead with the plan
 post execution tasks after officially implementing the strategic plan

Risk evaluation

 mention risks associated with the strategic plan

 mention the steps taken to reduce the potential risk

A.C.4.2. Develop criteria for reviewing potential options for a strategy plan

The market today is very unpredictable. An effective strategic plan shall enhance the
sustainability and growth of ICICI bank. A strategic plan institutes realistic goals and objectives.
It directs the organization to achieve these goals. By crafting a strategic plan, organizations can
get crucial insights in the current market trends, consumer sectors and buying patterns. By
making necessary alterations in the organization can look forward for a smooth experience. The
strategies which aim to mitigate risks will boost the profitability. Today, it is crucial for the
board members to have a set process to recognize, evaluate, supervise and report potential risks.
The top management must make it mandatory for all the units of the organization to accept this
process. When it comes to strategic selling, one must identify all the chief participants, learn
their reasons for buying and their degree if influence on the sales. Organizations will be ready to
evaluate their position in the market as well as attend to the intention behind each decision
maker.

The crisis simulation exercise comprises of four phases. The first phase is planning .i.e. it
includes the final framework (consisting of simulation participants, objectives). The second
phase is preparation .i.e. it prepares the essential materials, needed documents, simulation scripts,
scenarios etc. The third phase is execution .i.e. conducting simulation exercises and the last
phase is evaluation i.e. includes evaluating the results of simulation, evaluation report,
recommendations etc.

A.C.4.3 Construct an agreed strategy plan that includes resource implications

We have discussed earlier the current market position of ICICI bank by using tools like porters
five forces, SWOT analysis. Post this; the top management is all geared to make ICICI banks one
of the most profitable banks. ICICI bank needs to focus on money center banks. Strategic selling
will also boost productivity in affluent markets and rising affluent clients. It needs to build a
strong foundation and be ready to effectively deal with any hurdles that come in future. The
business units which are not performing well over last few years need to be shut down and ICICI
should look forward to invest in other segments which will produce flourishing results. In the
coming years, it should also invest in updating its technology. ICICI bank should presently focus
on investing in their pro points.

file:///C:/Users/User/Downloads/mannya_stakeholder_2012.pdf

People: ICICI should invest in people across various sectors including investment consultants.

Markets: ICICI bank already operates in 19 countries. So, it should focus in branching out in
different geographical areas with always giving emphasis to India; knowing the consumer loyalty
and growing market.

Reorganize: ICICI bank needs to be more focused on customers, invest in research and
development to generate innovative products, it should have an effective risk management. Also,
it should stop the operations of its underperforming units to avoid any further losses.

Resource Implications for ICICI bank:

 Analyzing its underperforming business units will make ICICI bank to take crucial step
of exiting that particular business unit.
 ICICI bank operates in growing markets and there are several opportunities to tap.
 ICICI bank focus on improvising its financial position
 It should further enhance its strengths and work on its weaknesses so that they are able to
deal with uncertainties.
  ICICI bank should aim to deliver elevated profitability in the coming years.

A.C.5.1 Compare core organizational values (ethical, cultural, environmental, social and
business) with the current business objectives of an organization

As being one of the leading banks in the banking industry, ICICI has set high standards in the
market in which it operates. Over the decades, it has got opportunities to be an example of
goodness. Banking industry has always been under critical observation. Everyone in this industry
should respect and follow the legal framework in order to peacefully conduct its operations.
Organizational values are built on teamwork, customer focus, integrity, agility, innovation,
excellence, leadership, loyalty, relationships, perseverance etc. ICICI bank has always promoted
constructive outcomes for its stakeholders both internal as well as external stakeholders.

Core values of ICICI bank are:

 Strongly adhere to the government policies and regulations as failing to do so will harm
our reputation and may lead to cancellation of license and heavy fines.
 Reduce carbon foot prints as much as possible and care for the environment.
 Fulfill our corporate social responsibility in the society we operate.
 Follow the organization’s obligations to work in a healthy and productive environment.
 Act in accordance with the organizations’ laws unless in situations where government
laws apply.
 Act professionally all the time when at work.
 Foster transparency in dealings
 Build and sustain relationships to give our customers fulfilling consumer experience.
 Encourage volunteering to serve the community in which we operate.
 Ensure that when required, you are registered as some countries regulated that individuals
of the organization are also registered under law.
 To apply our extensive industry knowledge to our spirited advantage.
 Make sure that any activity (volunteering) taken due to personal interest is still under the
law.
 Be very sure of the legal framework while conducting activities across borders.
 https://corporate.iciciprulife.com/public/About-us/Vision-Values.htm

A.C.5.2 Develop appropriate vision and mission statements for an organization

Mission Statement: To benchmark ICICI bank against international standards and

practices in terms of compliance, risk management, product
offering and service levels. To support ICICI bank to deliver
customized results across diverse platforms.
Vision Statement: To enable ICICI bank to be consumer driven and enjoy market
leadership. Also, to be the most favored financial services employer
with focus on creating values.

Everybody wants to follow the traditional ways, but organizations have to innovate in order to
become market leaders. Organizations must embrace change by taking small steps and not
overrate the risks associated with change. Every step towards change must be taken after careful
assessment.

ICICI bank must invest in research and development to come up with innovative products and
services. It should become more resourceful in the way it carries out its operations and
implement its strategies. Better decision-making processes should be taken across all levels.
There should be effective communication across all the stakeholders to avoid conflicts and to
promote productivity.

A.C.5.3 Produce agreed future management objectives for an organization

ICICI bank aspires to become a leading bank in the coming years. In order to become the leader
it will take necessary steps now, it aims to provide 100 percent customer satisfaction to its client.
It will focus more on its strengths and also take action to exit from underperforming business
units immediately. It plans to make small changes in the beginning so that the final result is
productive.

Consumer Centric

ICICI bank will adopt a more efficient customer centric approach. It will improvise on its
services and products that will fully satisfy the customers. It aims to enhance overall client
experience and work for the betterment of its clients. It aims to invest in technology
advancements to develop better online banking platforms. It will shift its offerings to be more
consumers centric and adopt wide-ranging strategies to further outshine. This will definitely pave
ways for better future sales opportunities.

Implementation of strategies

After developing an effective strategic plan, ICICI bank will implement it into the real world.
This can be attainted with committed teamwork, excellent management of operations, and focus
towards productivity for all the stakeholders. These strategies will yield positive outcomes.

Build brand image

In the past, ICICI bank’s image was harmed in money laundering case and debt recovery case. It
has realized that this had severely affected its customer base and they had even lost a small
amount of market share. So now it’s going to adopt appropriate risk management strategies to
protect its brand image also work towards enhancing it.

Discipline and morale

ICICI bank will maintain discipline in the organization and elevate the morale of its team
members by delegating authority and applying the principles of decentralization. This will a shift
from the status quo but it will motivate the employees to work to their full potential which will
enhance overall profitability of the organization.

Take a step today for a better future

ICICI bank plans to invest in those business units in which they want to flourish. To move ahead
with this they have to shut down some units where their performance is relatively poor. Though
this may not be easily accepted by public, ICICI bank will have to take this step for better future
prospects. This will definitely be a testing period but it is sure to accelerate performance.

https://www.businessmanagementideas.com/management/management-objectives-10-major-
objectives-of-management-explained/2563

A.C.5.4 Develop measures for evaluating a strategy plan

Metrics work very well while evaluating a strategy plan of an organization. Such Key
performance indicators are used by organizations to assess their success at reaching targets.
Metrics help the organization to understand whether it is achieving its objectives efficiently and
effectively. It is important to assemble these measures together so that the organization can
conclude whether the plan is realistic, balanced and complete.

https://www.klipfolio.com/resources/articles/what-is-a-key-performance-indicator

Efficiency

Efficiency is a chief key performance indicator which is used to measure productivity. With
consistent pressure to complete enormous body of work and meet the deadlines as well as
functioning on efficiency was not only a requirement but also demanding for teams to achieve
short and long targets.

Effectiveness

To be able to track effectiveness it is important to measure people involved in the planning

process. Also, assess whether these people acquire adequate skills. To manage this effectively,
traditional organizational teams need to be transformed with teams who have sufficient
proficiency in various areas to deliver within their teams. If a particular team needs technical
skills to examine strategic planning. Then the organization should arrange for such training to its
team.

https://www.clearpointstrategy.com/18-key-performance-indicators/

Controls

Controls have proven to bet better against superior threats than higher capabilities. However, this
may not always compel improvement. A three step process for better control hygiene would be :

 make simpler and rationalize your controls

 make more revised control investment decisions
 develop the performance of control owners
People

One of the schema of ICICI bank is to work on its employees especially those involved in
strategic planning as it involves appropriate training. It’s a known fact that an organization is
shaped by its people and it is imperative that every team member sees growth in their profession.
Following are the four major points if the company has to retain great people:

 promote an environment where people feel appreciated

 supervise the poor performers appropriately and ensure improvement in their growth
 compensation that is market competitive
 Pave paths for talent to enter and mount the ranks.

A.C.6.1 Develop a schedule for implementing a strategy plan in an organization

For any organization, a strategic plan is important and effective for its growth in the market it
operates. It not only lays down the goals of the organization but also provides ways to improvise
the company’s performance. A good strategic plan is necessary to communicate the vision of the
organization to its stakeholders and help you achieve the vision. When finally executed, it works
as a powerful force driven to achieve its purpose. In ICICI bank a lot of emphasis are laid on
content strategy and planning and an understanding that this process and there are several stages
to it from generating content to preparation, resourcing, appraise, distribution etc. it remains a
challenge for many organizations to strike a balance between appropriate content be it local or
global.

https://balancedscorecard.org/strategic-planning-basics/#:~:text=A%20strategic%20plan%20is
%20a,developed%20during%20the%20planning%20exercise

Key for successful implementation

Table 6.1 stating the key for successful implementation

Quick recruitment Quick employment of chief experts in strategic

planning, quick access to facilities, quick set
up teams, models, infrastructure etc for
program, delivery
Efficient delivery management Efficient management of program with
experience of this multifaceted scale, proficient
project management team to structure, plan,
deliver, control etc
Joint governance Joint governance across business units,
transparent communication on priorities, buy-
in across IT
Dependency control rigid management of external, inter, intra
dependencies, adherence to the program
guidelines.

A.C.6.2 Create appropriate dissemination processes to gain commitment from stakeholders

in an organization

At ICICI bank, project management teams hold a very significant position to carry the project till
the end. The project management team is also responsible for continuous engagement of all the
stakeholders. They also have to ensure that correct people receive the correct piece of
information at the appropriate time. When you ensure that right amount of people are
participating and are committed to organizational growth this will definitely maximize the
potential of the organization. When project management teams efficiently deal with project
groups, it probes the stakeholders to think how their effective participation influences different
parties. The points below can be practiced for increased stakeholder engagement.

Develop a list of stakeholders: it is essential to generate stakeholder list and address concerns
like who can support the project? Who will take decisions? Who will be responsible for the
project? Who pose as a threat to the project? Which stakeholder will have an impact of the
project?

Stakeholder involvement: this will determine the level of involvement of stakeholders and the
tasks they will perform

Mapping the list: it is effective to map all the stakeholders on a grid will directly indicate their
impact and authority.

Keep them updated: communication at all levels is crucial and the aim is to keep all
stakeholders informed and given timely updates about the project.

Deal with rising concerns: some stakeholders may extensively influence others and also possess
the ability to disturb change acceptance. It is important to address these concerns at times of
planning communications.

Keep a record of the engagement: once we have our list of stakeholders and the level of
involvement required by them it is good to keep a record of this on an everyday basis.

https://www.productfocus.com/a-simple-tool-for-stakeholder-management/

DISC chart

The DISC chart (dominance, influence, steadiness and conscientiousness) propose a people-
oriented approach. This approach can be used to understand our stakeholders better rather than
beginning with self-designed views about them. The aim of this is to have a deeper level of
understanding as well as to develop empathy towards them. However, understanding
stakeholders can be simple as well as complex. So, one should try to create an empathy map to
gain more deep insights.

https://www.mindtools.com/pages/article/newCDV_92.htm

DOMINANCE INFLUENCE STEADINESS CONSCIENTIOUSNESS

Best feature Supervise Motivating Nurturing Organized
If not their best, Forceful Disturbing Compliant escaping
they are
Support them with Actions Visions Relationships Logic
Influence them What a solution Why is it best? Who will benefit How will we come to a
with is likely to do? from the solution?
solution?
For decisions give Choices incentive Guarantee verification
them
Make sure you Outcomes awareness Support Service
follow up

A.C.6.3 Design monitoring and evaluation systems for the implementation of a strategy
plan in an organization

Project plan monitoring ensures monitoring at every level of the project. It is an end-to-end
process. Timely assessments can also be conducted to see what was expected at the beginning of
the plan and current planning stage. Must keep a check on; growth of tasks against baseline plan,
assessment of external, inter and intra dependencies, must also make sure that the project tasks
and activities reflect project scope. It is also effective to monitor key milestones.

Performance analysis: all the data related to performance should be assessed in time to detect
issues related to performance and relevance issues

Business monitoring: these issues are likely to have an effect on customers, revenue etc.

Application monitoring: a monitoring plan needed to please the key performance indicators of
a business.
Capacity planning: the collection of significant data that may help to diagnose any capacity
thresholds. Also, provide red flags so that the team can take necessary actions.

Infrastructure monitoring: a monitoring plan considered necessary to feed the data

requirements of business monitoring.

RAG Indicator

A KPI can only be helpful when comparison analysis can be performed. Without a comparator
we can’t say whether the value is indifferent, good or bad.

In project management RAG stands for red, amber and green and it refers to reporting of the
project status as it indicated the growth of the project. With a RAG indicator the process of
monitoring, controlling and tracking a project becomes easier. Its colours are based on traffic
lights. Red light indicates that problems are rising and the team needs to attend to them for the
success of the project. Green light suggests that the growth of the project is progressive and as
per the plan and the amber light suggests that issues may exist and the project may need
assistance.

https://pmtips.net/article/what-does-rag-status-mean

RAG TIME COST BENEFITS

RED delay in the Enormous increase in Benefits specified in
completion of the the project amount the plan initiation will
project not be affected
AMBER Schedule is still Cost is increased by Increased chances that
within the red status within the red status cost and time may
affect the benefits

GREEN if the criteria for red Cost may have If the criterion for red
and amber status is increased but still is and amber status has
not met, then the below the threshold of not met, then the
project is in green red status project is in green
status and towards status.
progress
RAID log

Since project management includes multiple facets, its monitoring and execution can be very
time-consuming and hectic. This is why it becomes essential for project managers to look for
opportunities that will assist in efficiency. One such strategy is RAID – risks, assumptions,
issues and dependencies. This tool aims at simplifying the process of tracking, collection and
monitoring the project. Risks are potential future threats that can negatively affect the project
development. Timely measures need to be taken to deal with these risks. Also, it is imperative
that risks are recognized in the initial stages before they move on to severe issue. Assumptions
are those factors on which all the planning is done and they are taken to be valid. Issues are
present or past events and need to be fixed as soon as they arise or else it may disrupt the
delivery of the project. Dependencies are tasks or events which are dependent on the outcome of
some tasks or events. RAID log makes you think in a strategic manner and with the help of it
decision-making becomes easier. It helps the project manager to track the essential and
momentous factors in an effective manner. With this all the stakeholders will have a record of
the life-cycle of the project.

https://corporatefinanceinstitute.com/resources/knowledge/other/raid-log/