Discussion Case: Mountain Bank

3. Identify and discuss the strategy used by Forest Hill to compete in a commodity market.

It is clearly that the company is experiencing some growth; however, the management needs to find a solution to solve the arising issue where their employees are lacking of motivation in their job. However, the executive team’s decision to raise pay rates for its customer service staff and the vested profit-sharing plan does not improve the employees’ work performance or customers’ satisfaction.

Differentiation strategy is generally reserved for companies with a clear competitive advantage. Companies such as Mercedes and Apple employ this strategy. Differentiation strategy is demonstrated when a company provides value to customers through unique unique features and characteristics of a company's products rather than by the lowest price (Open Learning World 2010).

Management wants a happy workforce, because this will increase all levels of productivity as well as lessen any kind of work stoppage. Even though nonunion companies may have similar goals their approach may be a little different. Certain programs that apply to all employee as well as their feedbacks heighten their goals and also productivity.

Given the Commonwealth Bank Group’s franchise position, the organisation aims to capture the opportunity to generate growth domestically and outside of Australia by identifying and meeting more of the needs of its customers.

Evaluate RBC strategy and organizational structure. Is RBC well equipped to compete with niche operators such as internet-only banks with focused product offerings?

Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival?

3. Identify and discuss the strategy used by Forest Hill to compete in a commodity market.

I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given:

CIBC has focused its core business on retail and business banking, wealth management, and whole sale banking. They have shown a proven track record of providing there customers with financial services and advice through a group upwards of 1100 branches worldwide. Strategies CIBC has portrayed is to continually find new ways to enhance the experience of the client and to stimulate safe revenue growth. CIBC has put emphases on creating deep meaningful relationships with all clients, constantly trying new ways to improve service and sales prospects and to create relationships with new clients while retaining existing clients for a long period of time (CIBC).

Nipissing Bank, one of Eastern Ontario’s premier financial institutions, was established in 1986 in Ottawa Ontario. Working with corporate, personal, and commercial customers they established about 25 retail branches mainly in Ontario and provide many financial services such as general banking, trust, insurance and wealth management. Though as time went on more competitors moved in and as is usually the case, Nipissing Bank has been pressured to gain more customers and retain their current clientele. By 2008, Nipissing was struggling to maintain their clients using their current marketing tools. Their manager of administrative services, McKenzie Scott, is making an attempt to improve these efforts and has a few options with which to

In differentiation strategies, the emphasis is on creating value through sustainable uniqueness. This can be achieved through product innovations, superior quality, or superior service, which is then sustained and leveraged through creative advertising; brand-building and strong supply chain relationships. Another requirement for a successful differentiation strategy is that customers must be willing to pay more for the uniqueness of a product or service than the firm paid to create it. A differentiation strategy will lead to higher firm performance only if buyers value the attributes that make a product or service unique enough to pay a higher price for it or if they choose to buy from that firm preferentially. If

3. Identify and discuss the strategy used by Forest Hill to compete in a commodity market.

Pay and rewards attract and retain employees. Having the right pay and benefit for employees motivate them. This helps employees feel valued and can remove animosity between employee and employer. Training and development has a positive impact on employees, this shows investment from the employer and enhances career progression.

1. Identify the steps taken by Menton Bank to develop a stronger customer orientation in its retail branches.