Table of Contents 1

Table of Contents 1. Introduction.............................................................................................................2 1.2 Vision.......................................................................................................................2 1.3 Mission....................................................................................................................2 2.1 Framework 1 - Porter 5 forces analysis...................................................................3 2.2 Framework 2 – Fishbone Chart...............................................................................8 2.3 Framework 3 – SWOT Analysis...........................................................................11 3. Propose of enterprise system................................................................................14 4. Challenges.............................................................................................................16 5. Conclusion............................................................................................................18 6. References.............................................................................................................19 7. Work Break Structure...........................................................................................23 1. Introduction Hong Leong Bank Berhad is a public listed bank in Malaysia. It is a member of the Hong Leong Group Malaysia. Today, Hong Leong Bank possesses 300 above branches in South-east Asia, and the Headquarter in Malaysia is located in Kuala Lumpur, Malaysia. The businesses of Hong Leong Bank includes personal financial services, wholesale banking, Islamic financial services and regional franchises and it also has electronic channels including Hong Leong Mobile Banking, Hong Leong Online, Hong Leong Call Centre and self-service terminals (Hong Leong Bank Berhad, 2014). 1.2 Vision (Hong Leong annual report, 2009)’. 1.3 Mission Hong Leong Bank’s mission is to help clients to generate superior returns through the provision of top-quality service, in-depth investment insights and prudent risk management advices (Hong Leong Bank Berhad, 2014). 2.1 Framework 1 - Porter 5 forces analysis A) Threat of new entrants (Low) Banking industry in Malaysia is regulated by the central bank of Malaysia, which is the BNM- Bank Negara Malaysia. The principal of BNM under the Central Bank of Malaysia Act 2009 is to promote monetary stability and financial stability conducive to the sustainable growth of the Malaysian economy (Bank Negara Malaysia, 2012). In the Law of Malaysia, Act 372- Banking and Financial Institution Act 1989 is an act that for licensing and regulation of institutions for banking, or other finance relating companies connected therewith Bank Negara Malaysia. All the banking institutions in Malaysia are required to hold a valid license granted by the Minister (Lawyerment, 2014). There are 16 sections and 131 rules and regulations for applying license under Banking and Financial Institution Acts 1989. Licensing requirement is a barrier for the new entrance to startup a banking industry in Malaysia. Therefore, threat of new entrants for Hong Leong Bank is low. B) Threat of substitute products or services (high) Threats of Hong Leong Bank is not only from the competitors, but it also comes from the insurance agencies, investing and loan companies. Some insurance companies do offer insurance plans that covered illness saving plans with high interest rates. Great Eastern offers a plan that is called ‘Great Ideal Living’ which covers 36 different kinds of critical illness, Total and Permanent Disability (TPD), death and added advantages with Deferred Whole Life (DWL) as shown in Table 2.1.1. Table 2.1.1 is the calculation of DWL from Great Eastern. (Great Eastern, 2013) Figure 2.1.1 example of Great Ideal Living Plan from Great Eastern. (Great Eastern, 2013) Therefore, the threat of substitute products or services for Hong Leong Bank is high. C) Bargaining power of customers (high) Customers of Hong Leong Bank are the account holders who using Hong Leong Bank services. There are 27 commercial banks in Malaysia which included foreign and local owns (Bank Negara Malaysia, 2014), whereas Hong Leong Bank is not the only option for customers to save money. Hong Leong Bank customers has large number of alternatives that offer the similar services. Spilt banking occurred when people employed two or more bankers to handle their personal financial affairs (Denton & Chan, 1991). From a customer perspective, multiple banking account enable a customer to get a wider range of financial services, also accessing to wider range of ATM. Therefore, the bargaining power of customers is high. D) Bargaining power of suppliers (low) Hong Leong Bank unlike those manufacturing industry need suppliers for supplying the raw materials, whereas the supplier plays an important role in the product processing. But for Hong Leong Bank as in service industry, the suppliers are the supporting facilities, such as furniture, cheque books, statement papers, ATM machine and etc. The impact of these in Hong Leong Bank is not much significant since they are not raw materials (UKESSAYS.COM, 2009). Depositors is another suppliers of Hong Leong Bank. Depositors refers to the people who deposits the money into the bank. Depositor has no bargaining power whatever in reality (Ackerman, 2008). A fixed interest rate will be paid for the depositors in Hong Leong Bank. Although the more money depositor deposits into Hong Leong Bank, he/she will get paid based on the fixed interest rate for the amount of money deposited. Therefore, the bargain power of suppliers for Hong Leong Bank is low. E) Intensity of competitive rivalry (high) Although is hard for new entrants to get the banking license in Malaysia, yet Hong Leong Bank still facing the challenges from another 26 commercial banks in Malaysia. Overnight Policy Rate (OPR) referring to the interest rate for housing loan from Bank Negara Malaysia for banks as references for banks in BLR adjustments, but there might differ from bank to others bank. (BLR.MY, 2011) OPR was fixed by government is 3% and the range of BLR adjustment is based on the bank themselves after the calculation based on the formula that involved the costs of the loan (Bank Negara Malaysia, 2014). The strategies to promote the services are almost the same among these banks. There is no identical service that provided by Hong Leong Bank, whereas all of them are controlled by government, the only making differences among the banks is the BLR adjustment (Refer to table 2.1.2 for the comparison table of BLR among the commercial banks in Malaysia). Therefore, the degree of intensity of competitive rivalry of Hong Leong Bank is high. Table 2.1.2 is the table of comparison BLR that offers by Malaysia Commercial Banks (RmValues, 2011) There are many financial companies that offer private loans with lower interest rate compared to Hong Leong Bank. Comparing Hong Leong Bank to MBSB, that loans out the same amount of money which is RM10 000 and with the same repayment period, the interest rate of Hong Leong Bank is slightly higher compared to MBSB. Table 2.1.3 Loan Repayment Tables. (Left table is the repayment table of MBSB and right table is the repayment table of Hong Leong Bank.) 2 .2 Framework 2 – Fishbone Chart Facilities Procedure 2 Less CDM in 3 Messy the branches Inconvenience to Bad Communication between Departments customersLess Employee service Hong Leong customers in a specific time Poor Service Affect employee working Certain Impolite staff Call Irrational Deploymentperformance Centre (Back Stage) Staff Facilities Equipment Figure 2.2.1 (daryl.k, 2008) The Cash Deposit Machine (CDM) is a problem that facing by the customer. In Figure 2.2.1, the customer complaints that there is no enough Cash Deposit Machines (CDM) in the branch of Hong Leong Bank. Occasionally, the CDM will faults or too many customers using in one CDM and this cause the customer inconvenience. Procedure Figure 2.2.2 (Wong, 2014) The problem of Hong Leong Bank is their messy process due to they do not have a better communication between the departments. Because of this problem, the customer feel confuse about the information procedure that giving by the employee and customer feel disappointed with their services. In the Figure 2.2.2 above, the customer has been complaint due to this problem. Staff Front Stage Problem One of the problems is occurring in the front stage. When during the lunch time, the customer is waiting the front stage employee for service, but there are only few employees are working due to they cannot arrange their working time well and cannot find the people to replace their working position and this occurred in some of the Hong Leong Bank branches. Back Stage Problem Figure 2.2.3 (Chong, 2013) Another problem is about the back desk staff. The back stage staff is referring to the employee of Hong Leong bank call center. The problem about call center is the Hong Leong Bank cannot ensure all employees in call center are speaking friendly and politely to the customer. This attitude of employee will affect their impression to the customer and the customers will think they are not trained and not professional enough. In Figure 2.2.3 above, the customer complaints the sound of employee is unfriendly and impolite when the customer calling to the call center. Irrational Deployment The internal problem of Hong Leong bank has been affected the morale and working

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