Reference no: EM13782939

Organization: Nordic Investment Bank

Introduction

Organization assessment refers to the critical analysis of organization processes, structures and operations with consideration of how various operations are conducted. Consistent assessment is necessary; putting into consideration the various change aspects and the dynamic industrial features. Departments in the organization highly dictate the various changes in the unit as a whole, and integration is of major emphasis to ensure development and growth of the entire enterprise.

Assessment allows managers to effectively implement organization plans, and come up with applicable solutions where relevant for the sake of improving organization performance(Khaleghi, 2013).  This paper categorically defines how the organization assessment of Nordic Investment Bank is conducted, bearing in mind elements that are a weak point as well as those that lead to its effectiveness. Appropriate reviews are also made, and strategic plans analyzed to ensure proper formulation of organization goals and strategies.

Company's business strategy and global competitiveness plan.

 Nordic Investment bank has effectively designed business strategies, especially with the effectively formulated global competitive plans. Business strategies applied in the organization are not only favorable to cater for future financial demands pertaining to the organization's financial assets, but also relevant in ensuring supportive expansion measures in the future. It is also refined to effectively cater for the current organization needs, considering the flexibility of structures and quality of set strategies. Nordic Investment Bank is aimed at making a difference in the financial industry and especially enhancing its success in the industry.

The organization has gained competitive advantage over the years, and this has made it register increased sales volumes hence effectiveness in production for the entire organization. Managers and other stakeholders at Nordic Investment bank have been on the forefront in ensuring that business strategies are specifically developed to maintain the organization's competitive advantage in the financial sector. Other competitors, who are in most cases credit institutions and Saccos, are what make the productivity of the institution to increase, due to the lack of monopolist existence(Hartline, 2002). The different types of strategies used by Nordic Investment bank include;

1)      Cost leadership

Cost leadership is realized where the Nordic Investment Bank prices its products to be among the lowest in the financial industry. The service organization has used this strategy to lure more customers who focus on affordability of services as well as high quality products. With this strategy, most of the production costs are minimized to be lower than those of competitors. Quality service delivery has been used over the years and is a reflection of overall transformation of the organization as a result of adoption of the cost leadership strategy and applying it in the industry. With this strategy, Nordic Investment Bank has been able to undercut competitors and earn larger shares of the market in terms of consumer preference and loyalty for the service organization.

2)      Product differentiation

Diversity in production has been effectively embraced in the quest to ensure provision of variety for customers to choose from, as well as for the customers to remain competitive in the industry. Product differentiation may be through use of different branding techniques or even naming for different commodities. Thestrategy has been of great help to the Nordic Investment Bank, especially where there is need to provide variety of quality services to the consumers and clients of the organization. Advertisements are the key elements used in ensuring that services provided by Nordic Investment Bank are made aware to the public, persuasion of prospective customers to try out the Bank's services. It is important for clients to be able to note differences in quality of services provided(Aakar, 2004).

3)      Price strategy

Pricing strategies are developed to facilitate increased sales and especially customer attraction and retention. Major strategies used by Nordic Investment Bank include; skimming, penetration pricing, bundle and promotional strategies.

Penetrationpricing has been effectively used by Nordic Investment Bank, where lower initial prices are offered for the services and products provided, than those of the other organizations. In most cases, this strategy is used where there is need to introduce a new product or service into the market, or otherwise penetrate a new market. This is the easiest method to gain a large market share in the industry within the shortest time. After gaining considerable market share and recovering initial investment, the services and products are offered at a normal market price.

Skimming has been used in specific markets, where Nordic Investment Bank finds the need to take advantage of the few who are willing to purchase organization products, regardless of the price but with specifications on quality. This in turn makes the organization profits increase. Economy pricing for Nordic Investment Institution is only used where the organization provides common services for its loyal consumers at lower prices. This is useful where there is need to promote the organizations industry positionin terms of service delivery. Promotional techniques are used by Nordic Bank to persuade customers to embrace their services and especially reminding them of the existence of several services and products in the industry, for the sake of their satisfaction.

Internal assessment using SWOT analysis.

SWOT analysis is the major step towards ensuring effectiveness of organization assessment. This is a structured method which in turn ensures the realization of organization strengths, weaknesses, opportunities and threats. Internal assessment of Nordic Investment Bank incorporates the analysis of its strengths and weaknesses in the financial industry. Strengths are all factors which have an impact on operations at Nordic Investment Bank that specifically make most of its operations a success. Weaknesses lead to organization failure and cause a decrease in its productivity whereas opportunities are all aspects which may in turn lead to a potential increase in the overall effectiveness and profitability of the organization if realized(Ted, 2011).

            Strengths of Nordic Investment bank include; ability to developwebsite to facilitate targeting of various market places, especially those in regions where traditional banking methods have not be effectively incorporated. This shows the eagerness of the organization to eventually adopt new trends in the field of marketing as well as earning industrial competitiveness. Other are such as; economic stability of the company's target market, availability of professionals in the organization and wide financial base for its expansions and quality service delivery for the customers. Organization weaknesses include; high costs of service delivery, high maintenance costs, incorporation of new technologies into the organization operations, high training costs, complex organization structures, change in management and finally, lack of communication effectiveness among personnel in the organization.

Assessment of the external environment via anexternal scenario evaluation.

External organization assessment is based on two major aspects; opportunities and threats. Nordic Investment Bank has several potential opportunities which include; embracing hybrid strategies by the organization, creation of new business markets, availability of numerous opportunities for mergers and acquisitions and availability of improvedtechnology in the organization, which in turn will facilitate operational accuracy and effectiveness. Various threats facing the organization include; resistance to change by employees, difficulties experienced as a result of managing wide organization scope, infringement of copyrights and presence of cultural values which prohibit its normal operations(Bachmier, 2013). Weak management is also a treat to the success of the entity. Political factors, economic, demographics, legal and social factors are also a hindrance to its effectiveness, for example political instability hinders its productivity.

Company's organizational structure.

The below diagram is the organization structure for Nordic Investment Bank, where different levels of management have been adequately represented. Strict hierarchy procedures are observed, and different functional units interact to enhance effectiveness in their operations. Most departments in the organization have been broken down into various representative units, and this is what makes most of the operations unsuccessful, slow or inefficient.

Organization's business process: Using the tools of business process

            Organization architecture involves the integration of information and all technological components as well as people in the organization for the sole purpose of achieving increased effectiveness. Nordic Investment Bank has sufficiently managed to create a positive interconnection between organization structure and the systems which work for the benefit of the customers and the realization of profitability as well (Aakar, 2004). The organization design used at Nordic Investment Bank is purposely meant to ensure that value is continuously created, for both present and prospective customers.

            Value creation, exhibition and flexibility are the major provisions of the newly designed organization structures, and the overall design mechanisms used have proven to be highly effective and above all, well manageable. Various tools have been used by Nordic Bank for organization design. These include; departmentalization and geographic design. It is important or the Nordic Investment Bank to spread its services over wide regions and especially reach out to external locations for the growth of its market.

            With geographic design, each location is categorized based on the internal structures, and departmentalization is managed through effective consideration of management layers in the organization. This allows independence in operations hence specialization and efficiency in the long run. There is need for most technological, service or manufacturing companies to devise new organization designs to ensure effectiveness and profitability in their operations (Bachmier, 2013).

Potential ethical issues that may impact the traditional management functions of the company and recommend preventative measures.

Ethical conduct is a basic aspect which is expected from all organizations, regardless of the size, nature of operations or management systems used. At Nordic Investment Bank, ethics have a great impact on several managerial functions in the organization in a number of ways. The code of ethics in the organization itself stipulated various requirements of the organization from various employees. This is to ensure adherence to specific aspects and regulations which govern the smooth operations of the entity.

Major elements which are emphasized include; honesty, courtesy, integrity, punctuality, responsibility and fairness. Personnel at the organization are all expected to strictly observe the ethics of the organization as stipulated by the code of conduct, which is part of the orientation process and hiring process. The organization is keen to ensure that all guidelines are strictly followed through facilitating workshops, to enable personnel enrichment with recommended business standards. The main aim of this is to ultimately facilitate customer satisfaction which in the long run, is of benefit to the organization.

Integrity above all principles is the most valued at Nordic Investment as outlined in its values and requirements for all employees. The employers should also be keen to ensure employee welfare is adequately met, and above all, provide safe working conditions. Other ethical practices which are highly valued include; adherence to rules and regulations, effective decision making and prompt taking of action where necessary with consideration of market intelligence in order to counter competition in the market (Hartline, 2002).

Conclusion

           The success of all activities at Nordic Investment Bank depends on effectiveness of operations and professionalism exhibited by the personnel present. It is however important for the concerned parties, which may be management in this case, to ensure that organization weaknesses are dealt with and threats countered for the sake of profitability and accomplishment of all goals at Nordic Investment Bank. Being a service organization, operations at the investment bank need to be improved. This is for the sake of achieving global competitiveness and for the purpose of increasing the client base. This in turn will promote the development of different functional units and the success of the entity as a whole.