NEDBANK: COACHING CAPABILITIES FOR GROWTH EXECUTION Harvard Case Solution & Analysis

NEDBANK: COACHING CAPABILITIES FOR GROWTH EXECUTION Case Solution

Synopsis

            The Chief Executive Officer of Nedbank entered into a dilemma with regard to executing a growth strategy for Nedbank in the highly competitive and mature market in which the bank operated. This dilemma had been caused by the consumers of the bank who had higher expectations of the financial institutions and were technologically skilled and multi banked. The real risk to the growth strategy of Nedbank has been caused by shortage of skills in Africa and the retention of the employees of the company to improve the global competitiveness of the bank. The economic condition of South Africa in 2014 had been severely impacted by the energy crisis; however, Nedbank yielded positive results with its conservative growth strategy.

The market capitalization, earnings, net interest income, and net asset value for Nedbank increased significantly in 2014. The company initiated its growth strategies in the rest of Africa when the economy of South Africa slowed down. Before 2003, the bank was positioned as a niche player, however, after a turnaround in 2003, the strategic focus of the bank changed to ‘bank for all’. The growth strategy of the company had always adopted a conservative approach to sustain the competitive position in the market. Brown cultivated a world-class corporate culture by embodying the Nedbank Leadership Philosophy, which comprised of four E’s.

The company had always taken a client-centered approach towards innovation to enhance the competitiveness and value proposition of the clients. This huge value had been created over the years as a result of internal capability, which had been developed at Nedbank through coaching and mentoring. The company trained its executives on the basis of the coaching way of leading. Nedbank also developed a coaching forum in 2009 for conducting coaching programs. One-on-one coaching, one-on-one mentoring, executive coaching, team coaching, and group coaching resulted in the creation of the most capable workforce at Nedbank. However, now the major challenge faced by Brown and his executives was how to find and retain the right talent for executing its growth strategies in South Africa and all other markets.

Problem Statement

            The major issue that needs to be addressed by Brown is to find and retain the highly skilled talent for executing the growth strategies of Nedbank in South Africa and the other markets in Africa. In addition, he was not sure regarding how to execute the growth strategy of Nedbank in the highly competitive and mature market, in which the bank operated.

Analysis

            The concise analysis for the internal and the external situation facing Nedbank has been performed by analyzing the strengths and weaknesses to perform internal analysis and analyzing its opportunities and threats to perform external analysis.

Internal Analysis

Strengths

            First of all, if we talk about the strengths of the company, then the main strength of Nedbank is that despite being the newest bank, Nedbank is one of the largest banks in South Africa. The market capitalization of the bank in 2014 is R 124.21 billion. Exhibit 1 attached in the appendix shows tremendous average growth in total bank assets, shareholder’s equity, loan deposit ratio, equity asset ratio, total risk based capital and other key ratios. The bank actively took part in the community based natural resource management initiatives and also took part in the renewable energy programs in South Africa. Despite, the weak economy of South Africa, in 2014, the bank was yielding positive results. Bank also initiated its growth strategies to the other markets of Africa and pursued geographical expansion......................

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