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Operation strategy – Hatton National Bank


Operation strategy – Hatton National bank

Word count 3583


HNB business strategy
Operation Strategy and Operation Efficiency
Inefficient operation areas which are not aligned with operational strategy
Formulate a new business strategy
Monitoring and control

Additional information

Table of Contents

Executive Summary
1. Introduction
2. HNB business strategy
3. Operation Strategy and Operation Efficiency
4. Inefficient operation areas which are not aligned with operational strategy
4.1 Not availability of enough ATM machines island wide and time taken to fix the broken ATM machines
4.2 Higher customer waiting time and longer time taken to loan approval
4.3 E-banking and digital technology is not used effectively to improve customer services.
5. Formulate a new business strategy
5.1 Cost
5.2 Time
5.3 Flexibility
5.4 Quality
6 Monitoring and control
7. Conclusion


Executive Summary

Hatton National Bank (HNB) is one of premier private sector commercial bank in Sri Lanka. HNB has been internationally recognized as “Best retail bank in Sri Lanka” continuously nine time within 2007 to 2016 by the Asian Banker Magazine.
Within this report HNB operational strategy will be extensively analyzed to identify how operation strategy align with its business strategy. This will identify inefficient areas of the operation and weaknesses which caused to the inefficiency. Then this will explain how operation strategy could be improved to support business strategy. Main four areas such as cost, quality, time and flexibility have been concerned to develop new business strategy. Concepts such as lean operation, six sigma and Business Process Reengineering (BPR) have been suggested to enhance the operation efficiency.

1. Introduction

Hatton National Bank (HNB) one of leading commercial bank in Sri Lanka which was operate since 1888. HNB is listed entity in Colombo Stock Exchange. Currently HNB has more than 250 branches all over the Sri Lanka. According Fitch rating, HNB has been rated as AA- (lka). Currently HNB is involved in retail banking, corporate banking, international banking, treasury and project financing.
HNB vision is to be the recognized leader and chosen partner in providing financial solutions through inspired people. Bank is going to achieve the vision through the mission of combining entrepreneurial spirit with empowered people and leading edge technology to constantly exceed shareholder expectation.
However due to competitiveness of the banking industry, bank need to adjust with the new technology to retain and attract the customers. Therefore bank need to access their operation to identify whether their operation strategy align with the business strategy. This report is mainly focus four element; organization’s current business strategy, operation strategy, quality management and operation performance to evaluate its operation. It will help to identify areas need to improve in the operation and weakness which lead the issues. Finally this report will suggest the corrective action plans to fine tune the operation.

2. HNB business strategy
HNB’s strategy is driven through people, technology and processes for transforming the bank to become to become a Game Changer in the industry. Bank try to achieve customer service excellence by enhancing customer convenience, adding value to product offering and improving speed of service delivery. They should have higher level of resource optimization, operational excellence and digital drive to reach customer service excellence. (HNB Annual report, 2016)