Struggling With China Construction Bank Case Study?

The situational analysis of China Construction Bank is mainly related to the overall macro and micro environmental situation within which the organization is operating and the position that it has been able to develop in the financial industry. The expansion of operations of China Construction Bank and the growth that it has depicted in the market are considered to be major factors that have an impact on the strategies that the organization aims at implementing in the sector of its operations. The impact of the strategies of China Construction Bank on the stakeholders of the organization is a major aspect of the situational analysis. The overall organizational operations and competition being faced in the industry are important aspects of the situational analysis. 

China Construction Bank Strategic

i) Business Level Strategies

             The business level strategies that have been implemented by China Construction Bank are mainly based on the best services being provided to the customers and maximizing the value offered to the shareholders along with the excellent career-related opportunities being gained by the employees. The corporate customers of China Construction Bank belong to different industries that include telecommunications, power, gas and oil and the infrastructure. The retail and wholesale products offered by the organization are focussed on the fee-based businesses that include the settlement and payment services, management of corporate treasury and personal management of wealth.

ii) Corporate Level Strategies

            The corporate level strategies used by China Construction Bank are considered to be customer-centric and market-oriented in nature and the organization is also committed towards developing into the world class group of banking services that aims at improvement of the capabilities related to value creation. The Bank aims at achieving integration of the long-term and short-term benefits and further synthesis of the objectives related to social responsibilities and business goals. The maximisation of value being provided to the stakeholders including the shareholders, associates, society and customers are also considered to be a major aspect of the corporate level strategies.

iii) Competitive Analysis and Advantage in the industry

            The business environment in financial sector of China is considered to be highly competitive in nature due to the presence of various other organizations that offer similar services. The organizations in the industry that provide similar services include Agricultural Bank of China, Chase Bank, Citibank, Industrial and Commercial Bank of China Ltd., Bank of China and JP Morgan Chase & Co. The highly competitive business environment is considered to be a major factor that has an impact on the strategies being developed and implemented by the organization.

SWOT Analysis

i) Strengths

             The major strengths of China Construction Bank have led to formation of a competitive advantage of the organization in Chinese financial sector. The effective financial position and strong name gained by the bank is an important factor that has helped the organization in developing its position in the industry. The extensive services and facilities gained by the Bank are also strengths that have been effective for ensuring that it enhance its image in the sector.

ii) Weaknesses

             The major weakness that is being faced by China Construction Bank is related to the strong levels of competition being provided by the various international banks in the financial sector. Unstable conditions of the market in the post-pandemic period have also led to formation of weaknesses of the organization.

iii) Opportunities

             The opportunities related to expansion of the operations of China Construction Bank in different countries and market can be considered by the organization for maintaining its position in the industry. Diversification of the portfolios for the customers and expansion of the Chinese economy in future are important aspects that can influence the profit margins and revenues being gained by the organization.

iv) Threats

             The threats that are being faced by China Construction Bank are mainly related to the changes taking place in the government regulations and the levels of financial crisis being faced by the organization. The slowdown detected in the Chinese economy based on changes in the policies can also have an adverse impact on the strategies of China Construction Bank and overall profitability gained by the organization.

PESTLE Analysis

Political factors – The tariffs and trade regulations are considered to be important factors that can influence the strategies of China Construction Bank. China Construction Bank has its operations in various countries and the government policies and capacities are different based on which the company can aim at developing the strategies. The political unrest in different companies can affect the operations and revenues of the company.

Economic factors – Economic aspects can affect the operations and decisions made by China Construction Bank and the countries that offer high rates of interest can attract the firm for making investments. The different factors like inflation rate, interest rate, savings rate and foreign exchange rate can have an impact on the economic condition of China and the revenues gained by China Construction Bank.

Social factors – Social factors that are mainly based on the cultural aspects and norms can influence the types of products that can be offered by China Construction Bank. The skill levels and demographics of China have an impact on the types of services and products that are chosen by China Construction Bank.

Technological factors – The technological advancements in the different countries have increased the importance of social media for marketing and promotional activities of China Construction Bank. Fast disruptions in the different industries and changes in the transportation industry have an influence on the players like Lyft and Uber.

Environmental factors – The growth in concern related to global changes in climate and increase in levels of pollution are considered to be major environmental aspects that influence the strategies of the company. The laws related to environmental pollution, waste management, water and air pollution are able to play an important role in influencing the strategies of China Construction Bank.

Legal factors – The laws related to anti-discrimination and human resources influence the strategies of China Construction Bank. The anti-trust laws being applied in the industry and consumer protection laws can also affect the strategies and operations of China Construction Bank in the financial sector of China.