In order for the company to achieve excellence, it would necessitate highly competent Chief Executive Officers to direct its vision into the reality. A proactive CEO in relation to decision making particularly in formulating strategic actions as well as its goals and objectives with due consideration to the companys strengths and weaknesses will eventually turn into higher productivity as well as profits in spite of continuously unstable market environment. Hence, the objective assessment of the companys strengths and weaknesses will first and foremost be materialized and will be then necessary in preparing course of strategic actions.
Strengths of Development Bank of Singapore Limited (DBS)
With this regard, the strengths as well as weaknesses of Development Bank of Singapore Limited (DBS) which is considered as primary source of financial products and services in Singapore and even in Southeast Asia providing indispensable business and banking solutions will be critically examined in this article to ensure the sustainable advancement of the companys state as well as its global economic stand. This can be done upon the recognition of DBS strength in terms of business mix having characterized as highly diversified conveying moderate investment risks. This can be exemplified in various banking dealings of DBS among private consumers and other financial institutions. DBS also actively participate in the global money markets including Central Treasury and Central Operations. Thus, DBS offers extensive varieties of financial services and apparently does not merely rely on a single business section. In doing so, it facilitates DBS in compensating possible losses in one business dealing to another business section. Furthermore, it is of great assistance for DBS in understanding which business section is having economic gains or losses.
In furtherance, DBS has its strength in terms of strategic location in Singapore and extending to various Southeast Asian.
In Singapore and Hong Kong alone, its clienteles are almost five million in providing financial products and services having two trademarks in the former such as DBS as well as POSBthe primary source of clienteles given its nature of mass oriented bank presently having. The combination of these two banks in Singapore enables them to have 80 offices and almost a thousand ATMs all over the country. Moreover, DBS has been well recognized bank participant in the economic market of small and medium enterprises or SMEs acquiring the highest market share in terms of equipment as well as trade financing. This wide ranging business area has been serving by almost 14,000 employees in diverse culture of over 30 nationalities. Lastly, DBS financial products and services are most excellently renowned and highly reliant as viewed by its clienteles. This also has been proven in the awards given by international credit raters of being AA- as well as Aa1 in the value of assetsmaking it one of the premier banks in South East Asian regions. In this sense, DBSs prevailing economic market posture together with its high brand representation provides a momentous competitiveness.
Weaknesses of DBS
In viewing the other side of the story, however, DBS has a weak position in terms of its very inadequate coverage in other geographical location receiving a high risk in business dealing since it functions frequently and its high dependence in economic markets of both Singapore and Hong Kong in spite of its other earning in other Asian countries. Throughout the financial report of 2008, DBS earnings primarily came from Singapore and Hong Kong only. Although it is beneficial for DBS in these markets, however, being highly dependent can be harmful and even impede its maneuver in the long run. One critical scenario is when there is another financial economic crisis in Asia region, just like in the present crisis in Dubai, which can immediately and drastically pull down DBSs earnings as well as its various financial investments.
More so, DBS experienced a delicate in terms of its operational performance in 2008. Its earnings from interest accounted for only 8,122 million Singaporean dollars (SGD) which is considerably down to 10.65 upon comparison to the previous year having SGD 9,090 million. In relation to DBS net earnings, it comprises only for SGD 1,929.00 million which is also a significant reduction of 15.32 than the year 2007 with SGD 2,278 million. Conversely, DBS total earning has decreased by 2 from SGD 6,163 million in 2007 to only 6,053 million in 2008. In essence, the internal earnings development of DBS has been negatively distressed because of its inability to perform well in its operations. Apparently, this might probably be directed to an insufficient situation in meeting its responsibility to maintain and keep its advancement and extensions of effective future plans. Prospective Plans
If given the opportunity of being a CEO of DBS, the fundamental system to be applied is to reinforce the companys strengths and to eliminate or better yet transform its corresponding weaknesses into valuable assets. So, the primary action is to have an intense focus on geographically diversifying its business dealings. This kind of global strategic extension would facilitate enhancement process of reaching other potential markets. Eventually, DBS needs to supplementary fortify its internal operational development by means of complementary and strategic acquirements in support to its current business dealings. This acquirement will then improve the DBS existence in other Asian markets hence upholding its competitiveness in the region. Lastly, DBS must integrate innovative financial products and services to gain higher suppleness to grab potential development. Having this kind of prospective plans for DBS, it will, in effect, strengthen its strengths of well its business mix diversification while lessening its inadequate experience in other geographical areas. Consequently, this also addresses DBS weakness of deficit in internal performance.
Evidently enough, in spite of DBSs continuing economic growth, it also faces inadequacies in the present and even in the future. Nonetheless, it only necessitates to continuously revolutionizing its strengths into its superior form and completing the transformation of weakness into valuable strength to ensure the success of DBS even in the presence of challenging economic environment.
Strengths of Development Bank of Singapore Limited (DBS)
With this regard, the strengths as well as weaknesses of Development Bank of Singapore Limited (DBS) which is considered as primary source of financial products and services in Singapore and even in Southeast Asia providing indispensable business and banking solutions will be critically examined in this article to ensure the sustainable advancement of the companys state as well as its global economic stand. This can be done upon the recognition of DBS strength in terms of business mix having characterized as highly diversified conveying moderate investment risks. This can be exemplified in various banking dealings of DBS among private consumers and other financial institutions. DBS also actively participate in the global money markets including Central Treasury and Central Operations. Thus, DBS offers extensive varieties of financial services and apparently does not merely rely on a single business section. In doing so, it facilitates DBS in compensating possible losses in one business dealing to another business section. Furthermore, it is of great assistance for DBS in understanding which business section is having economic gains or losses.
In furtherance, DBS has its strength in terms of strategic location in Singapore and extending to various Southeast Asian.
In Singapore and Hong Kong alone, its clienteles are almost five million in providing financial products and services having two trademarks in the former such as DBS as well as POSBthe primary source of clienteles given its nature of mass oriented bank presently having. The combination of these two banks in Singapore enables them to have 80 offices and almost a thousand ATMs all over the country. Moreover, DBS has been well recognized bank participant in the economic market of small and medium enterprises or SMEs acquiring the highest market share in terms of equipment as well as trade financing. This wide ranging business area has been serving by almost 14,000 employees in diverse culture of over 30 nationalities. Lastly, DBS financial products and services are most excellently renowned and highly reliant as viewed by its clienteles. This also has been proven in the awards given by international credit raters of being AA- as well as Aa1 in the value of assetsmaking it one of the premier banks in South East Asian regions. In this sense, DBSs prevailing economic market posture together with its high brand representation provides a momentous competitiveness.
Weaknesses of DBS
In viewing the other side of the story, however, DBS has a weak position in terms of its very inadequate coverage in other geographical location receiving a high risk in business dealing since it functions frequently and its high dependence in economic markets of both Singapore and Hong Kong in spite of its other earning in other Asian countries. Throughout the financial report of 2008, DBS earnings primarily came from Singapore and Hong Kong only. Although it is beneficial for DBS in these markets, however, being highly dependent can be harmful and even impede its maneuver in the long run. One critical scenario is when there is another financial economic crisis in Asia region, just like in the present crisis in Dubai, which can immediately and drastically pull down DBSs earnings as well as its various financial investments.
More so, DBS experienced a delicate in terms of its operational performance in 2008. Its earnings from interest accounted for only 8,122 million Singaporean dollars (SGD) which is considerably down to 10.65 upon comparison to the previous year having SGD 9,090 million. In relation to DBS net earnings, it comprises only for SGD 1,929.00 million which is also a significant reduction of 15.32 than the year 2007 with SGD 2,278 million. Conversely, DBS total earning has decreased by 2 from SGD 6,163 million in 2007 to only 6,053 million in 2008. In essence, the internal earnings development of DBS has been negatively distressed because of its inability to perform well in its operations. Apparently, this might probably be directed to an insufficient situation in meeting its responsibility to maintain and keep its advancement and extensions of effective future plans. Prospective Plans
If given the opportunity of being a CEO of DBS, the fundamental system to be applied is to reinforce the companys strengths and to eliminate or better yet transform its corresponding weaknesses into valuable assets. So, the primary action is to have an intense focus on geographically diversifying its business dealings. This kind of global strategic extension would facilitate enhancement process of reaching other potential markets. Eventually, DBS needs to supplementary fortify its internal operational development by means of complementary and strategic acquirements in support to its current business dealings. This acquirement will then improve the DBS existence in other Asian markets hence upholding its competitiveness in the region. Lastly, DBS must integrate innovative financial products and services to gain higher suppleness to grab potential development. Having this kind of prospective plans for DBS, it will, in effect, strengthen its strengths of well its business mix diversification while lessening its inadequate experience in other geographical areas. Consequently, this also addresses DBS weakness of deficit in internal performance.
Evidently enough, in spite of DBSs continuing economic growth, it also faces inadequacies in the present and even in the future. Nonetheless, it only necessitates to continuously revolutionizing its strengths into its superior form and completing the transformation of weakness into valuable strength to ensure the success of DBS even in the presence of challenging economic environment.
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