Bryn Mawr Case
THE CASE: Bryn Mawr National Bank
VIEWPOINT
Financial Advisor Consultant
TIME CONTEXT
Current 1982
I. PROBLEM STATEMENT
How should Bryn Mawr find a successful banking strategy in an era of increased competition?
II. STATEMENT OF THE OBJECTIVE To be able to choose the best strategy:
a) To increase the performance within the next two to five years
b) For asset expansion and deposit growth
III. AREAS OF CONSIDERATION
Strengths
-the bank provides full range of services
- the bank utilizes a variety of media
- moderate success in asset expansion and deposit growth
-extensive coverage of deposits
-easily accessible location
-technical expertise of employees
-BOD’s are seasoned bankers and are highly competent
Opportunities
-the area in which the bank serves is predominantly residential. Hence, they can expand services beyond the town and its adjoining area.
-Educational institution as additional target
-Ventures to other financial services products
-Probable partnership
Weaknesses
-limited branches to serve customers
-high turnover rate for women (under clerical/teller)
-profit in some months was very low
-limited target market
-services is not that sophisticated compared to other banks
Threats
- competitive conditions in the banking industry
- merger/acquisition/closure of town and country banks to large
-employees turnover averaged 35% per year in the last three years
IV. ASSUMPTIONS
None
V. ALTERNATIVE COURSES OF ACTION
ACA No.
1
(Develop alliance) Grow by expansion/acquisition/partnership with other local banks
2
(Grow organically) Optimize allocation of capital
3
Improve efficiency and create added value for customers
VI. ANALYSIS
ACA No.
ADVANTAGE(S)
DISADVANTAGE(S)
1
-stronger ties
-partnership can create an avenue for innovative services
-capture value and recover investments
-Lack of integration can dilute strategy
-Heavy handed approach can destroy value and lose business
-stronger financial position and performance
VIEWPOINT
Financial Advisor Consultant
TIME CONTEXT
Current 1982
I. PROBLEM STATEMENT
How should Bryn Mawr find a successful banking strategy in an era of increased competition?
II. STATEMENT OF THE OBJECTIVE To be able to choose the best strategy:
a) To increase the performance within the next two to five years
b) For asset expansion and deposit growth
III. AREAS OF CONSIDERATION
Strengths
-the bank provides full range of services
- the bank utilizes a variety of media
- moderate success in asset expansion and deposit growth
-extensive coverage of deposits
-easily accessible location
-technical expertise of employees
-BOD’s are seasoned bankers and are highly competent
Opportunities
-the area in which the bank serves is predominantly residential. Hence, they can expand services beyond the town and its adjoining area.
-Educational institution as additional target
-Ventures to other financial services products
-Probable partnership
Weaknesses
-limited branches to serve customers
-high turnover rate for women (under clerical/teller)
-profit in some months was very low
-limited target market
-services is not that sophisticated compared to other banks
Threats
- competitive conditions in the banking industry
- merger/acquisition/closure of town and country banks to large
-employees turnover averaged 35% per year in the last three years
IV. ASSUMPTIONS
None
V. ALTERNATIVE COURSES OF ACTION
ACA No.
1
(Develop alliance) Grow by expansion/acquisition/partnership with other local banks
2
(Grow organically) Optimize allocation of capital
3
Improve efficiency and create added value for customers
VI. ANALYSIS
ACA No.
ADVANTAGE(S)
DISADVANTAGE(S)
1
-stronger ties
-partnership can create an avenue for innovative services
-capture value and recover investments
-Lack of integration can dilute strategy
-Heavy handed approach can destroy value and lose business
-stronger financial position and performance