Vancity: Doing Good, Doing Well

Vancity: Doing Good, Doing Well Description

The case describes the situation facing Vancity in the wake of the 2008 financial crisis, in an environment where monetary policy was being used to stimulate the economy. The immediate decision facing the CEO was whether to raise interest rates on loans to make up for falling interest income. With close to zero per cent interest rates being advocated by the Bank of Canada, the spread between deposit and loan rates had narrowed to unprecedented levels. The situation was complicated for Vancity by its structure as a member-owned cooperative and its strategy of community engagement, as well as by its need to get members to sign consent to the rate change.

Case Description Vancity: Doing Good, Doing Well

Strategic Managment Tools Used in Case Study Analysis of Vancity: Doing Good, Doing Well

STEP 1. Problem Identification in Vancity: Doing Good, Doing Well case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Vancity: Doing Good, Doing Well case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Vancity: Doing Good, Doing Well case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Vancity: Doing Good, Doing Well case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Vancity: Doing Good, Doing Well case study

STEP 6. Recommendations Vancity: Doing Good, Doing Well case study

STEP 7. Basis of Recommendations for Vancity: Doing Good, Doing Well case study

Case Analysis of Vancity: Doing Good, Doing Well

Vancity: Doing Good, Doing Well is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Vancity: Doing Good, Doing Well is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Vancity: Doing Good, Doing Well case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Vancity: Doing Good, Doing Well will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Vancity: Doing Good, Doing Well case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Vancity: Doing Good, Doing Well, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Vancity: Doing Good, Doing Well case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Vancity: Doing Good, Doing Well case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Vancity: Doing Good, Doing Well

Step 1 – Problem Identification of Vancity: Doing Good, Doing Well - Harvard Business School Case Study

The first step to solve HBR Vancity: Doing Good, Doing Well case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Vancity Rates is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Vancity Rates, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Vancity: Doing Good, Doing Well.

The external environment analysis of Vancity: Doing Good, Doing Well will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Vancity: Doing Good, Doing Well case study. PESTEL analysis of " Vancity: Doing Good, Doing Well" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Vancity: Doing Good, Doing Well macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Vancity: Doing Good, Doing Well

To do comprehensive PESTEL analysis of case study – Vancity: Doing Good, Doing Well , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Vancity: Doing Good, Doing Well

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Vancity: Doing Good, Doing Well

Government policies have significant impact on the business environment of any country. The firm in “ Vancity: Doing Good, Doing Well ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Vancity Rates is operating, firms are required to store customer data within the premises of the country. Vancity Rates needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Vancity: Doing Good, Doing Well has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Vancity Rates in case study Vancity: Doing Good, Doing Well" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Vancity Rates in case study “ Vancity: Doing Good, Doing Well ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Vancity Rates in case study “ Vancity: Doing Good, Doing Well ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Vancity: Doing Good, Doing Well

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Vancity: Doing Good, Doing Well ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Vancity Rates can compete against other competitors.

Government Scheme & Subsidies Impact on Vancity: Doing Good, Doing Well

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Vancity: Doing Good, Doing Well case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Vancity: Doing Good, Doing Well

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Vancity Rates needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Vancity: Doing Good, Doing Well

Social Factors that Impact Vancity: Doing Good, Doing Well

Technological Factors that Impact Vancity: Doing Good, Doing Well

Environmental Factors that Impact Vancity: Doing Good, Doing Well

Legal Factors that Impact Vancity: Doing Good, Doing Well

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Vancity: Doing Good, Doing Well case study. PESTEL analysis of " Vancity: Doing Good, Doing Well" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Vancity: Doing Good, Doing Well case study solution