Solutions for Nedbank in South Africa Case Study

Open, View, and/or
Download this Document

Total Length: 1547 words ( 5 double-spaced pages)

Total Sources: 1

Page 1 of 5

Nedbank: South African Bank Case AnalysisA stable and secure baking system is essential for a country to function, given the centrality of borrowing and lending for the economy to grow. According to the case study by Scheepers (et al., 2014), the Nedbank Group Limited of South Africa offers retail banking, insurance, asset and wealth management, and other critical financial services with a headquarters in South Africa’s largest financial center. At the beginning of the case study, new CEO Mike Brown found himself at the helm of an organization which was 180 years old, but which he was charged with ensuring could continue to adapt to a new, financially sustainable reality. The bank had been lauded as not simply the best bank in South Africa, but also for its carbon-neutral status, and had also been credited with fostering Black and female empowerment as South Africa made the difficult transition from its divided past.The SituationIn 1994, the end of apartheid in South Africa was a watershed moment, not simply socially but also economically. Many South African companies, because of international sanctions, had largely been protected from international competition until apartheid’s end. Additionally, there was a need to foster equality and economic growth in the newly integrated economy. Nedbank, however, had always been on the cutting edge of innovation. As Nedcor (its pre-2004 name) it was one of the first banks to offer computerized banking services, back in 1964. Its growth was both organic in nature as well as due to its mergers and acquisitions with other banking entities.However, despite its many strengths, Nedcor also exhibited a number of notable deficits or weaknesses, most notably in how its matrix-like structure reduced accountability. Due to increased focus upon short-term gains and profitability, this resulted in more risk-taking and hedging. As a result, management began to clamp down and to emphasize much more conservative, risk-averse strategies and an autocratic approach to leadership. But rather than generating prosperity, this ultimately caused the bank to flounder. Finally, Nedbank rebranded itself in 2004 after a lackluster performance as a cleaner, greener, and more forward-thinking bank.Thus, Nedbank’s transformation not only addressed the needs of key stakeholders within the bank itself but also, on a more general level, those dependent for its financial stability in South Africa, and South Africa’s reputation as a whole in its post-apartheid configuration. Finally, its transformation offered an important template for other banks wishing to incorporate more environmentally friendly strategies into their approaches, rather than solely focusing on profits. Nedbank viewed sustainability not simply as a way of protecting itself from regulation and criticism, but also as a source of a significant competitive advantage.

Stuck Writing Your "Solutions for Nedbank in South Africa" Case Study?

View All Our Example Solutions for Nedbank in South Africa Case Study

Have A Custom Example Essay Written

However, despite the desire to create greater flexibility and reward more risk-taking in investment approaches to generate wealth, there was also an attempt to continue to foster accountability. For example, a balanced scorecard process was introduced whereby all employees were measured based upon “value creating, risk management, and transformation” (Scheepers et al., 2014, p.6). In contrast to previous methods of administering the company, the emphasis on thinking outside the box and transformative thinking was stressed, to shift the…

[…… parts of this paper are missing, click here to view the entire document ]

…culture of accountability for itself and its employees. It sets measurable benchmarks. It has won awards for its commitment to promoting women in its ranks, demonstrating it is part of a new, globally focused South Africa which is aligned with new ideals about gender and diversity. CEO Brown engaged in self-reflection about the company’s past, and further sustained the momentum forward, including offering options for customers to engage in even easier forms of digital banking and helpful tools to organize their financial lives. By making banking more user-friendly, it creates a bond between customer and bank which can encourage continued patronage, as well as catapults the company into the 21st century.ConclusionOverall, the leadership which was shown at the bank was exemplary, both from a visionary standpoint, as well as from a marketing and human resource standpoint. Ultimately, the best way for an organization to build its longevity is to establish a bond with consumers that is unique and which provides them perceived and real value. Balancing the bank’s growth and development with South Africa’s evolving and volatile regulatory framework will be a challenge, but the foundation of goodwill established between the bank and its employees will be an excellent springboard forward. Additionally, a culture of sustainability, not simply focused on profits, is useful, because it encourages employee and investor focus upon something more than the immediate bottom line on a short-term basis. The company has shown a commitment to caring about its customers, and also caring about the immediate community it serves, which will stand it in good stead….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Solutions For Nedbank In South Africa" (2022, April 10) Retrieved June 26, 2024, from
https://www.aceyourpaper.com/essays/solutions-nedbank-south-africa-2177266

Latest MLA Format (8th edition)

Copy Reference
"Solutions For Nedbank In South Africa" 10 April 2022. Web.26 June. 2024. <
https://www.aceyourpaper.com/essays/solutions-nedbank-south-africa-2177266>

Latest Chicago Format (16th edition)

Copy Reference
"Solutions For Nedbank In South Africa", 10 April 2022, Accessed.26 June. 2024,
https://www.aceyourpaper.com/essays/solutions-nedbank-south-africa-2177266
   

Open, View, and/or
Download this Document
order custom essay example