This purpose of this case study is to appreciate the application of strategic planning toolsto facilitate the realisation of the objectives of Custodial Service Department ofMajujaya Bank Berhad.Part 1 of this case has discussed the development of Majujaya Bank Berhad during theeighties whereby it was linked to the banking group from Sweden which owned thittypercents of the bank. The association had provided synergy to the bank whereby throughthe formation of Custodial Services Department, Majujaya Bank Berhad was able tocapitalise on the investment arm of the Swedish partner to generate fees based incomearising from trading and investment activities on the Kuala Lumpur Stock Exchange.Due t.o the relatively small clientele base, the department was vulnerable when theSwedish partner being the largest customer left the department as a result of changes inownership within the Swedish banking group. Realising the various internal as well asexternal factors, the department head was working on plan to overcome the predicamentin order to meet all objectives of the department and the bank.Part 2 of the case study has analysed the various factors by using the strategic toolsnamely SWOT as well as SPACE models and concluded that the most appropriateoption for Custodial Services Department is to expand the business into the regionalmarkets via working with fund managers who invest in regional markets. In order toproceed with regionalisation, the department needs to increase its efficiency andeffectiveness by streamlining its operation and expand the capability of the computersystems while at the same time marketing its services to secure more customers.It is through this approach at moderate scale that the department would be able to meetits objectives of being a leading local as well as regional provider while at the same timecontributing to the bank's objective of achieving tier 1 by 1998.
A Case Study: Majujaya Bank Berhad
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