The VanCity’s Competitive Advantage Essay.

The VanCity’s Competitive Advantage Essay.

 

Paper details

1. What is Vancity’s competitive advantage over other types of financial institutions?[4 marks]
2. Which of the four functions of management does Vancity appear to be doing quite well? Draw from the case to support your answer. [4 marks]The VanCity’s Competitive Advantage Essay.

Provide suitable formatting, correct grammar and spelling.The VanCity’s Competitive Advantage Essay.

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VanCity

 

The VanCity’sCompetitive Advantage Over Other Types of Financial Institutions

For any organization to gain competitive advantage, it must plan well and commit resources where others are either failing or have placed little focus within the industry. As such, for VanCity, being a leading financial institution in Canada, the organization has several competitive advantages which have kept it at the helm of the industry, keeping up with the competition from large banks within the same industry. These competitive advantages include a strong customer base, young and experienced workforce, development of Local products that target the local market niche and the growing need for financial and environmental products that offer customized solutions.The VanCity’s Competitive Advantage Essay.

To begin with, VanCity enjoys a strong customer base that surpasses the half a million mark. As such, its assets have grown over the years, which now stands in excess of $19 billion. This is a strong baseline to operate in as the asset and customer base muscle provides the organization with a competitive advantage over others when it comes to operationalization and day to day running of the organization. Customer base acts as the source of financing which offers both the deposit fund sourcing, as well as lending base capacity which is essential for any given financial institution. Therefore, with a strong customer and asset base, VanCity stands out as a strong institution across the Canadas financial industry enjoying a competitive advantage over the others as the institution also continues to expand (Ahmed et al. Pp. 2).The VanCity’s Competitive Advantage Essay.

On the other hand, having a young, innovative and experienced workforce is another competitive advantage that VanCity boasts of. Having a young CEO at the helm of the organization has brought with it the energy and new innovative ways of doing things, which has completely changed the working narrative and boosted energy that is essential for the young workforce. Young businessmen come up every day and their interaction with the young employees blends well in that there is a similar exchange of ideas and as such, the client base continues to grow and the royalty level and trust is kept on a high which is a competitive advantage over other organizations within the industry (Katharina et al., Pp. 323).The VanCity’s Competitive Advantage Essay.

What’s more, the development of local products that fits the demand and solutions to the existing local financial needs is another competitive advantage that has made VanCity succeed as a financial institution. Competing with well established banks requires a continuous innovation that must be guided by the establishment of the growing needs that are unmet by others across the industry.The VanCity’s Competitive Advantage Essay. This takes the advantage of targeting these market niches and offering financial solutions that fit the demand. For VanCity, targeting disadvantaged groups such as women, Gays and lesbians who are most of the times ignored by the major financial institutions was a move in the right direction which ensured that the organization has captured this ignored niche and fulfilled their financial needs. This does not only expand the client base but as well, it will strengthen the organization relationship with the disadvantaged groups within the community, establishing a long-term relationship that is essential for the institution’s future growth.The VanCity’s Competitive Advantage Essay.

Finally, VanCity has strengthened its competitive advantage in that it has established the growing need for financial and environmental products that offer customized solutions to the different sectors within the larger Canadian community. Offering mortgages for women, as well as committing a portion of the proceeds to the members and community through customized programs and community social responsibility initiatives has seen the organization gain recognition as a leading financial solution provider and one that cares about its community in general (Maritz et al., Pp. 2-3).The VanCity’s Competitive Advantage Essay. Collaboration with major investors such as Modo the car co-op has not only expanded the financial benefits but as well boosted the environmentally friendly initiative by increasing environmentally friendly cars within the Canadian cities. VanCity has also been in the forefront on issues to do with carbon reduction and has therefore collaborated with partners in the transport sector and green building projects to care for the surrounding environment.The VanCity’s Competitive Advantage Essay.

The Functions of Management That Vancity Appear to Be Doing Quite Well

Management is the pillar of every organization and poor management may lead an organization in a wrong direction, even when all other organizational elements are in place. With this in mind, the organization must therefore establish strategies that best fit the organizational management functions in order to enjoy a competitive advantage, as well as the future sustainability and growth of the organization. Of the four management functions, VanCity seems to do quite well in planning, staffing and organizing.The VanCity’s Competitive Advantage Essay.

For planning, the organization seems to think and innovate ahead to ensure that it meets the future financial needs as well as it empowers the surrounding communities. Taking advantage of the vulnerable groups such as women, gays and lesbians reveal a way of planning ahead and taking the advantage of these ignored niches that will hold the future of the institution. Furthermore, there seems to be an extensive planning of more partnership as the organization heads into the future. Collaborating with community initiatives, as well as other local investors will build a lasting relationship that is of advantage as the organization continues to plan ahead for its future(Maritz et al., Pp. 2-3).The VanCity’s Competitive Advantage Essay.

The other management function that VanCity seems to do quite well is the staffing function. As a matter of fact, its rich, innovative and young employee base quite defines the success the organization has recorded over the years. Most of the recognitions in terms of awards have emanated from the staffing activities for the organization. There is a believe within the organization that staff hold the financial success and productivity, which is a competitive advantage that will ensure that VanCity remains at the competitive edge of the industry. The staffing function has emerged well due to the establishment of flexibility in working hours, development of policies that integrate well with work-life balance, employee benefits, as well as a good reward system that appreciates and recognizes the good work done by employees.The VanCity’s Competitive Advantage Essay.

Furthermore, VanCity has also excelled well in the organizing function of management. Right from the expansion it has made over the years, the organization has continued to innovate and as well has organized itself into facing the future by bringing on board a young employee base that is able to organize and innovate to meet the future demands.The VanCity’s Competitive Advantage Essay. The managers within the organization also undergo value-based training that equips them with the organizational skills that are vital not only for the day-to-day running of the organization but also for the future sustainability of the organization. Placing the members at the center of the organization’s decision-making has brought in a n organizing element that has ensured the organization decisions are related with the members and community needs and thus ensuring the relationship that has existed over the years is protected and the organization continues to benefit the communities as it was intended from the beginning.The VanCity’s Competitive Advantage Essay.