Ⅰ. The Introduction – The Company Introduction
Ⅱ. The Analysis
ⅰ. The Market Situation
ⅱ. The 7-S Analysis
Ⅲ. The Problem Identification and Solutions
ⅰ. The problem Identification
ⅱ. Solutions
1. Strategy
The current strategy focuses on maximizing and maintaining their market share over the private banking mainly from the retail finance. The income is mostly from household customers since KB holds the largest number of customers in the private banking market. Based on the dominance over the private banking, they are currently putting priorities in developing new banking products to attract more various private customers and gain loyalty from them. The CEO Euh Yoon-Dae outlined KB’s top four priority goals for his term and two out of those goals were about maximizing and maintaining their private customers which are ‘to improve the value mainly on private customers’ and ‘to secure potential growth especially from university students by making special branches for them’. Rock Star Zone around university campuses which provides the free seminar room and the mini café shows their effort to increase private banking customers.
Their current strategic concern is that their source of income is concentrated on private customers too much. In order to become the advanced global bank, KB is trying hard to broaden and strengthen their influence on business market and foreign investment opportunities. They acquired BCC, a Kazakhstan bank, but it appears as a failure due to the bankruptcy of BCC. While maximizing the market share over retail finance, they are expected to put some more effort in penetrating business loaning market and M&A with foreign banks to achieve their current vision of the top Asian financial bank.
2. Structure
The basic structure of KB bank consists of 9 groups, 16 headquarters, 54 departments and about 1~3 teams under each department. The groups are divided not only by their functions, but also by their products or customers. However, groups and headquarters are just conceptual entities. Each group only has one chief who has the control over its own headquarters and also each headquarter only has one director who has the control over its own departments. If they didn’t exist, the CEO would have too many things to supervise. In other words, the groups and headquarters exist for adjusting span of control. KB is running teams under each department because it needs the immediate responsiveness to deal with rapidly changing financial situation. It enhanced specialization by allocating separate tasks to each team. Moreover, it eliminated middle ranks between a team leader and team members, which helps minimizing the delay of decision making. Also, there are no more ranks between the team members so that each member can feel free to participate in decision making and play a role

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