Examination on the Strategic Use of Information Technology in Tanzania Service Industries Essay

Businesses can attain sustainable competitive advantage by utilizing Information Technology (IT) in responding to the changing customers’ needs and changing business environment. (Talebnejad, 2008). This demands the organization to know how to apply this technology, and also devise appropriate and cost effective method for successful implementation. For example in 2004, the study of the relation between investment in IT and sales performance found out that they are positively related. Moreover in the same study, more than 79% of managers believed that IT has a vital role in business success (Talebnejad, 2008). On the same perspective, Tanzania service industry is on the road to great success if the companies and organizations adopt and use IT effectively in transforming their organizations. Service Industry defined Services industry is characterized by the intangible nature of their products. It covers a very wide spectrum of intangible tradable products such as banking, money transfers, insurance, telecommunications, business consultancy, health care, transportation, air travel, distribution services, hotels accommodation, recreational, tour operations, and many others. Tanzania Service Industry Since 1990s, Tanzania government embarked on major economic reforms that aimed at creating competitive financial and market system that that operate on market-oriented economic principles (Mtatifikilo, 1995). Since then, there has been a significant increase in the SMEs operating in different areas of the economy namely services, industry and agriculture. In the 2011 estimates, Tanzania economic growth is services dominated. Growth across Tanzania’s service sector has increased in the last few years relative to agriculture and industry. Agriculture, industry, and service s sectors contribute 27.8, 24.2, and 48 percent of GDP respectively1. Tourism, real estate and business services2 helped the broader service sector growth to an estimated 48 percent of Tanzania’s GDP in 2011. Information Technology (IT) â€Å"Information and Communications Technology (IT) is one of the most potent forces in shaping the twenty-first century. Its revolutionary impact affects the way people live, learn and work and the way government interacts with civil society †¦ The essence of the IT driven economic and social transformation is its power to help individuals and societies to use knowledge and ideas. Our vision of an information society is one that better enables people to fulfill their potential and realize their aspirations. To this end we must ensure that IT serves the mutually supportive goals of creating sustainable economic growth, enhancing the public welfare, and fostering social cohesion, and work to fully realize its potential to strengthen democracy, increase transparency and accountability in governance, promote human rights, enhance cultural diversity, and to foster international peace and stability. Meeting these goals and addressing emerging challenges will require effective national and international strategies† (G8 Okinawa Charter on Global Information Society, 2000) Information Technology (IT) refers to various hardware, software, networking, and data management components necessary for a system to operate. Communication needs are growing at a faster rate than any previous times. Functions such as e-mail, instant messaging, weblogs, video steaming and mobile data communications are some areas which have witnessed dramatic changes. The demand has been the key for rapid growth of big global IT companies such as Google, Apple, Samsung and Microsoft among many others. Tanzania has also witnessed significant growth if the communication sector. One area of interest is mobile communication, with number of subscribers approaching 15 million in 2010 (Behitsa & Diyamett, 2010). Consumer IT Penetration and Proficiency The growth of IT proficiency in Tanzania is encouraging. IT use among young generation is rapidly growing, thanks to many training institutes on ICT skills. The computer market has also grown rapidly. Many consumers have computers or mobile devices with internet access capability. The Tanzania Communications Regulatory Authority (TCRA) estimates 11% of internet penetration countrywide in 2010 consumer survey3. The Tanzania government in collaboration with development partners has also taken some initiatives to improve ICT usage level (Behitsa & Diyamett, 2010). These initiatives include eschools and ICT policy for basic education. The policy is aimed at expanding the reach of ICT skills down to primary schools4. Enterprise IT Adoption To measure IT adoption, we first have to understand why companies decide to adopt IT. The model below gives the factors that influence the adoption of IT in the company. There are factors which are internally driven while others are externally driven (Nguyen, 2009).Studies on IT adoption show that firms adopt IT as a means of survival and/or growth, ability to stay competitive in the market, and/or as innovation ability of the firm. The adoption process may be considered as customer driven (Winter, 2003), a reaction to an outside event, or as business selfinitiative as it focuses on improving efficiency (Corso, Martini, Pellegrini, & Paolucc, 2003). (Siggelkow & Levinthal, 2005) found out that firms go through changes within certain stages of their life cycle or in response to changes of their external environment. (Andries & Debackere, 2006) confirmed this view by pointing out that firms seek IT adoption in response to changes, both internal and external. Inte rnal changes include the life cycle or maturity of the firm and external changes are survival or stability in the market.

Service quality management

This case study talks about the many service quality issues faced by a local mass transport company, SMRT. The company has to still remain functional amidst mass crltlclsrn amongst the public due to Inefficient communication networks, inefficient maintenance and various problems in the senior management. As a newly appointed senior manager, it is imperative that we work towards delivering a high quality service to our customers. There are many tools and quality improvement frameworks that we can use to improve existing service quality standards.The problems faced by the company start with over 10 breakdowns that have occurred In d span of two years. Due to repetitive service disruptions, the previous CEO, Ms. Saw Phaik Hwa who has apologized publicly and offered false promises, further causing more service disruptions affecting around 127,000 passengers including 1000 passengers stranded in each of the four trains that were stalled. Malntenance Issues This Is one of the main problems that have Impacted the quality of the services provided by SMRT.Various issues such as misalignment of tracks & lack of evacuation nd emergency plans have impacted the customers' health and have caused some of them a lot of inconvenience and stress There has been serious impact on the servicgs productivity due to the same problems as they have not been able to successfully carry out their promised service. Even when the breakdowns happened, the backup power systems did not turn on and this made the people stranded very uncomfortable and claustrophobic. Excuses were given once again to quickly dismiss these accusations.By using Deming's 14 Points of Management, we could find out the root causes of the problem. 1 . Management Commitment: The senior management had not been able to live up to the promises that they have publicly given mainly due to the Inefficiency of the senior management. Had the senior management a closer involvement In the lower-level operations, they might have be en able to take suggested actions. 2. Understand Inspection: Due to the various problems mentioned above, it was important for the senior managers to gather relevant information regarding the frequently occurring problems.This suggests that the communication networks are not very efficient and this wlll be further discussed later In the report, 3. Improve Constantly: The Jepanese have developed d technique called â€Å"Kdlzen†, which means â€Å"Continuous Improvement†. This could be used to ensure that quality standards and customer expectations are met by constantly developing all dimensions of the service prov10ea. 4. Institute Iralnlng: Atter one 0T tne DreaK00wns, around 60 maintenance staff were deployed to gather information and rectify the problem that had caused a 5 hour disruption in the services.However, their inefficiency to analyze and rectify the root cause of the problem suggests that SMRT need to invest in training. . Institute Leadership: Leaders shoul d be coaches and mentor staffs rather than checking on them. The senior management has clearly shown a lack in leadership skills as they have only been giving excuses and false promises. Inefficient Communication Networks: This is another factor that contributed to the reducing service quality of SMRT. Efficient communication between various levels of the business is very important to run an efficient and successful business.SMRT has been facing various barriers in communicating instructions and messages from senior management to the operating evels and vice versa. The problems that have been occurring have not been reported properly to the higher authorities and hence not been able to receive instructions from the senior management on how to proceed further and improve the quality of the service being provided. Using ISO standards as a benchmark, we can see that SMRT is not being able to maintain high service quality standards.Since ISO is internationally recognized, this serves as a suitable benchmark. There are few principles that need to be followed in order to get their certification: 1 . Customer Focus: SMRT needs to meet the equirements of the customers and exceed their expectations but they have failed to do so. They have not improved their service quality and hence, their customer experience. 2. Leadership: As mentioned earlier in the report, the leaders have not been able to achieve the goals set and have disappointed their very large customer base. . Factual approach to decision-making: Since the employees are inefficient and have not been able to analyze data and information, their supervisors have not been able to suggest proper course of action. 4. System approach to management: According to this principle, all processes are interrelated. Since there has been a lack of co-ordination amongst the employees of every level, SMRT has not been able to manage their technologically advanced systems.One other instance of lack of a coordinated communicatio n systems was the humiliating and controversial message template that SMRT sent to its taxi drivers asking them to seize the â€Å"income opportunity' that arose because of the MRT breakdown. The common citizenry has heavily criticized this inappropriate message further contributing to the declining public image of the company. uggested Improvements Using Malcom Balbridge National Quality Award's 7 Criteria of Performance Excellence as the benchmark, there are quite a few improvements that could be suggested.To begin with: Leadership: Effective leadership brings out the best out of every employee of the firm, since the resignation of the previous CEO, the current CEO will take some time to settle into the position and it is important to make sure that he/she receives timely communication and proper assistance from other managers. Strategic Planning: It was very clear that the previous management have ot defined their future strategies clearly and have not prepared proper contingenc y plans and this has made life difficult for the customers and the management of SMRT.To ensure that this does not happen in the future, SMRT could conduct a formal meeting with all stakeholders to develop a strong and effective strategy with the public's opinion also taken in mind. Also, regular track and train maintenance should be conducted to reduce the chances of such problems arising again. Customer Focus: Surveys could be conducted to understand the customer's xpectations and SMRT could work towards fulfilling them.The constant service disruptions have already caused the company's image to decline and to make sure that this does not happen in the future, SMRT could look into developing proper plans. Measurement, Analysis and Knowledge Management: The lapses in information and data have also caused grave problems to the company and SMRT should invest in training existing and hiring new skilled employees to analyze and report field data. Workforce Focus: It is important to cons tantly monitor, motivate and rain the workforce.As a happy workforce is more efficient and can provide higher service quality that an unmotivated one. This would also increase service quality. Process Management: Ensuring proper contingency, emergency and evacuation plans during service disruptions can help increase quality and reduce the risk to customer's, while indirectly improving the image of the brand. Results: Putting everything together, it is still important to get results and improve the customer's image of the company while maintaining very high standards of service quality.

Can Facebook Ruin Romantic Relationships Research Paper - 1

Can Facebook Ruin Romantic Relationships - Research Paper Example There have been advantages of Facebooking like the ones spelt above. It is a site where people can have fun that includes sharing old and new photos (Persimmons). By use of its online chat room, there is creations and nurturing of numerous relationships. It has also mobilized participation of people in campaigns and social events. This has culminations by saying that it enhances collaboration and further strengthens social interaction within a community. However, Facebook has accusations of ruining relationships that are romantically based and sufficient evidence has been sufficed to explain this sad phenomenon. Facebook has been prescribed for use with one’s beloved family but it is bad for relationships (Persimmons). One of the reasons that have been brought forward to explain Face book’s tendency to ruin relationships is that it fuels jealousy tendencies and weird behaviour in people who are in relationships (Persimmons). An example is when a man/woman in a relationship updates his/her Facebook status and the comments he/she gets are of sexual nature but leaning towards a joke. This might lead to the partner getting upset and the result is relationship breakdown. Jealousy undermines relationships and Facebook can be a good cause of such jealousy tendencies. People have therefore become victim to this jealousy tendency in their relationship setups. Facebook also has a profile section that has a relationship personal status section. The site tells everyone whenever a person changes his or her status. Anxiety is created whenever such a thing is changed (Persimmons). For example, when somebody is casually dating another person, his or her status reads ‘it is complicated’. In reality, altering one’s relationship status leads top very harsh and uncomfortable relationships coupled with suspicious conversations that kill the morale of continuing with any given relationship.        Ã‚  

Comparison of the four bric emerging markets. Brazil, Russia, India Assignment

Comparison of the four bric emerging markets. Brazil, Russia, India and China - Assignment Example Emerging markets are indeed becoming points of focal call for most global expansion agenda for various multinational companies. This is largely due to the potentials that each of them uniquely possess. A major component of emerging markets is the four BRIC emerging markets represented by Brazil, Russia, India and China. This paper identifies the unique properties of each of the markets and makes a conclusion on the two most viable for any investor seeking to undertake massive business expansion to an emerging market. Coincidentally, each of the four BRIC countries is heavily populated with population running beyond 100 million people. However, for Brazil, it is not just a matter of heavy population but a highly strategic population concentration that serves as major advantage for investors. In the first place, Insch & Steensma (2006) admires the kind of population concentration in Southeastern and Northeastern regions, which are made up 79.8 million inhabitants and 53.5 million inhab itants respectively. Because of the population concentration, most of the vibrant economic activities take place in these two regions. For new entrants, the advantage this offers is that proximity will not be a challenge. Distribution channel also becomes more focused and less expensive. What is more, the population in the two economic regions has a near 100% literacy, which means that skilled labour is abundant in Brazil (Khanna, Pallepu & Sinha, 2005). All in all, cost of starting business in Brazil is cheaper because several expenses such as transportation, distribution, and labour are cut down significantly with government supporting with several trade incentives. The greatest strength of Russia among the four BRIC countries is that the country is made up of a highly diverse economic drive. What this means is that the concentration of the country, in terms of trade and economics is not focused on only few sectors (Goldman, 2007). In comparison to Brazil where tourism and agricul ture seem to dominate in the trade and economic aspects, Russia boasts of highly active trade economization in sectors including agriculture, energy, transport, science and technology, and space exploration. This situation creates as readily adaptable business environment for almost every kind of business. The disadvantage that this may carry however has to do with the fact that there is very high competition for new entrants, who demand extra strategy to cope in the economic environment. In the absence of this, Russia practices a free education system, which has for years helped in boasting the human capital of the country and that of industries. Just like Brazil, Russia has a very promising labour force, with the Indian labour force described as the world’s second largest, even though the country is overtaken by China. But the reason India’s labour force will be used for argument for the country as its major advantage to investors is the fact that this labour force i s relatively cheaper if compared to that of China. It is not surprising that India is regarded by the International Monetary Fund as having the third-largest purchasing power parity (Pelle, 2007). Because of the active nature of the labour force, India has actively been involved in both import and export, meaning that new entrants whose area of concern is in manufacturing will have no problem with the presence of raw materials the exportation of finished goods thereof. Currently, India is regarded as being the world's tenth-largest importer and the nineteenth-largest exporter (Chrystal & Lipsey, 2012). China on the other hand seem to have a part of all the advantages that each of the other countries bear. But for investors whose focus is active manufacturing that focused around science and technology, China will be the most prudent destination (Hitt & He, 2008). This is because the country has over the years taken up science and techn

Buddhism Essay Example | Topics and Well Written Essays - 750 words - 9

Buddhism - Essay Example It has also stayed conservative because aboriginalphilosophies of the nations it went to never really influenced it. Conversely, the Mahayana belief bases itself on culture, for instance, the Bon and Tibetan Buddhism. Theravada’s philosophy is straightforward. All worldly phenomena possess three traits, which are transient, impermanent, unsatisfactory and no one owns them. Elements that are compound contain both the material and non-material part. Further, they contain nothing but five compounds such as the material quality and non-material qualities such as consciousness, sensations, mental formatives, and perception (Duiker 225). The Theravada belief has remained intact since inception by the elders who heeded to the customof the abbots of the initial Buddha council. Theravada exhibits no hierarchical authority framework. However, the Sangha respects seniority, and the Pali canon, Sanskrit’s Tripitaka and Pali’s Tipitakaare the authoritative scripture, which contains the entire teachings of the Buddha (Saibaba 122). Based on understanding, it is the best thing to venerate Buddha and obey his teachings devoid of biastowards any tradition. This may prove intricate depending on a person’s culture. However, the pronounced teachers from all civilizations avoid any possible bias. The Theravada routeis captivating because it sticks to the fundaments. It is a live tradition with an uninterruptedancestry, which traces back to the ancient Buddha. Theravada Buddhism is the chief religion in the South East Asian dispensations such as Cambodia, Sri Lanka, Burma, and Thailand. Mahayana Buddhism depicts much of the teachings by Buddha’s,but it is churned with additional philosophical conceptions so that it appears to have a different view and leading to a dissimilarobjective. Both Mahayana and Theravada traditions honor and follow ShakyamuniBuddha. Theravada followers do not venerate the various celestial gods and Buddha as

Nursing theory Essay Example | Topics and Well Written Essays - 1250 words - 1

Nursing theory - Essay Example Orem’s nursing model recognizes universal self-care requirements namely, progressive self-care fundamentals, and health-deviation self- care basics. It evidences in importance of self-care and rehabilitation settings and encourages individual independence during treatments. Hence, self-care incorporates individuals own innovation and suitable implementation strategies for health improvement (Alligood, 2014). If a person takes full responsibility over his or her health, then self-care is achievable. Orem’s self-care theory explains complex interplay of patient’s psychological and socio-economic surroundings on health. Therefore, enlightens individuals to embrace appropriate life styles to minimize lifestyle diseases. Owing to the provisions Orem’s theory, nurse training takes into consideration the changing health care needs and teaches nurses to design issue specific nursing system for care delivery. The principal concepts of the theory identify self-care deficits and characterize individuals and nurse roles in addressing health demands. The components add to the nurses’ career skills to produce and efficiently manage the health scare systems. Therefore, the knowledge base enable nurses to determine extent of self-care need, assist clients to uphold a satisfactory state of self-care determine extent of nursing and utilize theories in practical cases. Since the nursing model centers on individuals capabilities, it helps nurses to conduct and empower people in order to promote healthy living. Dorothy Orem’s self-care system is an excellent education process component that helps students to learn the main health care concepts by examining individuals’ role or enhancing impressions of thought and feelings (Taylor & Renpenning 2011). Largely, the theory aims to overcome human  confines in the provision of nursing services and nursing education programs. The contemporary nursing

Summarize the artical, give an overall meaning, key facts and opinion Coursework

Summarize the artical, give an overall meaning, key facts and opinion of the sources - Coursework Example Post uses cells called myosatellites, these are muscle cells, which are used normally to repair damaged muscle tissue. These cells can be extracted without necessarily killing the animal, and they develop into a muscle cell; it is easier to control the development of these cells (Brown, 2011 p1). For the cells to develop the muscle cells must be exercised regularly, this can be done by giving the cells minute electric shocks that stimulate their growth. However, the professor wants the muscle cell to exercise on their own; pieces of velcro act as anchor points and are fitted into a Petri dish where they create tension in the muscle cells. Naturally, the cells will try to contract, but the velcro provides the necessary resistance, which stimulates the cells to grow and increase their bulk (Brown, 2011 p1). After a few weeks, the cells will have grown into strips, which are a couple of millimeters thick and 2-3 centimeters long. The professor has not yet managed to grow them any bigger; this is until he finds a means to enable nutrients and oxygen to access the cells that are at the center of the strip. The professor is hopeful that, in a few months coming, he will have developed an intricate meshwork that will enable the nutrient and oxygen to reach the center of the strip and produce strips that will be thick enough (Brown, 2011 p1). According to the professor, the research that he is carrying out has potential to change the meat production methods. With laboratory production of meat, we shall still need small herds of cattle to donate the stem cells, but the traditional livestock farming will be outdated. Although no one has tasted the meat yet, even if the hamburger does not taste good, it still represents a very significant breakthrough that could reduce carbon emissions and transform the face of farming (Brown, 2011 p1). The professor has had a lot of experience in the field of vascular physiology. The document was obtained

Hospitality Company Annual Report Analysis Essay

Hospitality Company Annual Report Analysis - Essay Example mple; Wyndham owns and operates over 15 of the biggest hospitality brands and hotel chains in the world such Howard Johnson, Days Inn, Travelodge, Ramada International and Wyndham Hotels and Resorts among others. As a whole the company has divided its business operations in three distinct segments: a) Lodging-by franchising hotels in the economy, mid-scale and upscale as well as extended stay categories of the lodging industry. The company also provides hotel management services for full-service hotels worldwide. Through their franchising agreements the company provides nightly bookings for their franchisee hotel owners through promotion of brand awareness, global sales promotions, ensuring customer service and satisfaction as well as upholding brand image. A large percentage of the revenue from this most profitable segment comes from franchise fees based on a percentage of gross revenues, royalties, as well as service and marketing fees. Another important source of income in the lodging segment is management fees that are collected under management contracts which offer their customers all the benefits of their global branding as well as all management, marketing, financial as well as booking and reservation services. The company also earns revenues from the Wyndham rewards program, when a participating customer stays at one of our hotels. b) Vacation Exchange and Rentals-The company affiliates themselves with developers and owners of vacation properties to allow owners of intervals to exchange their ownership stake for other intervals or leisure services within our network of vacation exchange business participants. This segment derives its revenues mostly from annual membership dues and exchange fees for members trading their intervals. c) Vacation Ownership- develop, market and sale and financing of VOI (vacation ownership interest) for prospective customers. This business segment provided some of the highest revenues for the company in 2010. Wyndham

Task 3 Experiment Coursework Example | Topics and Well Written Essays - 1250 words

Task 3 Experiment - Coursework Example Resistance to the salinity levels by seeds is important to ensure plant survival. Soil sanitization degrades the soil. Building up of minerals (Sodium, Potassium, Magnesium, Calcium, etc.) in these lands is due to evaporation. The condition is further worsened by over irrigation and excessive evaporation. Though some plants are tolerant to high salinity levels, others have little or no salinity tolerance. A high salt content interferes with the germination of seeds as it prevents roots from osmotic activities. This regulates the amount of nutrients and minerals being taken up by the plant. The Osmotic activities has been said to be partially if not fully, involved in the salt tolerance of certain plants (Neto et al., 2004). According to Bajji, he argues that the ability of the seed bank to remain dormant in high salt levels and germinate immediately after reduction is very significant in plants adapting and colonizing their environment as it ensures life continuity. (Bajji et al., 20 02) Measuring salt into cup on scales. In case the needed weight is less than the scale’s smallest increment, measure about 2 or 4 times that amount, and halve it using a spatula. Put the measured amount in a graduated cylinder. Carefully add the measured salt from the graduated cylinder to a measured volume of distilled water in another graduated cylinder and stir effectively. The main reason is to ensure that the salt is dissolved and evenly distributed throughout the solution. The seedlings including the control test are all stored under similar environmental conditions (Light, temperature and humidity). By varying the concentration of NaCl, one is able to compare the results by seeing how the seedlings are faring. Given that maize is widely grown in different regions with varying saline conditions, it is important we do this in order to understand that plants offer resistance to conditions that are not conducive for their

Refugee protection in International Law Essay Example | Topics and Well Written Essays - 1000 words

Refugee protection in International Law - Essay Example The essays together give a broad overview of the dimensions of refugee protection, especially setting out to what extent and how refugee protection is at present grounded in international law. It also points out the paradox that despite an emerging ‘theory of race’ that stipulates that race is not biological, in order to achieve protection, membership of a certain group, and thus race, has once again to be established – often based on biological criteria.The publication will be particularly helpful because of the breadth of its cover and also due to the legal aspects that are covered. When looking at the question of refugees, it is often unclear what means are legally open to people who are fleeing their country and how effective these avenues may be. There is often evidence that refugee-seekers are not following established pathways, with blame often attached to these people as ‘not genuine’ or as ‘queue-jumpers’.... The Editor in Chief is Professor Edward Craig and the source has become an essential research tool for university faculties and students alike. The definition sought from this source was that of ‘theory of race’, for which an entry by Michael Banton was available. In his article, he argues that race is not pure , as stipulated by Cuvier, nor does it develop over time, as Darwin suggested. Both these views mark racial discrimination as an integral part of race. Banton argues instead that racial discrimination is ‘learned’ and that race does not constitute ‘genetic or social’ difference and that there is no biological evidence that such a distinction exists in nature. For his summation, he draws on the findings of scientists as well as social scientists, including Freud, Linden, Martin and Jupp). At the outset of research into ‘races’ it is vital to understand what is meant by this term, as the word ‘race’ has been and st ill is used in a multitude of ways and understanding (including my own) has been quite ambiguous. It is startling to find to what extent we are taking for grated that ‘race’ is a fact and to what degree the ‘certainty’ of belonging to a race pervades communication. Refocusing this issue is therefore of paramount importance before writing about it. From this new perspective, it is possible to approach the task of ‘races and refugees’ with a deeper understanding of the problems of identification that exist in the home countries of those who flee. Suhrke, Astri. â€Å"Human security and the protection of refugees†, in Edward Newman and Joanne van Selm (eds.), Refugees and Forced Displacement: International

The Travel Expense Billing Controversy Essay Example for Free

The Travel Expense Billing Controversy Essay Neal A. Roberts, an employee of PricewaterhouseCoopers (PwC) found out that his employer was earning millions of dollars a year by way of a billing method that he thought was doubtful. PwC had been collecting large rebates on airline tickets and other travel expenses being charged as expenses to clients of the firm. These rebates were not being returned to the firm’s clients in the form of savings, but the firm was keeping these rebates for it. This was working, because the firm would bill the clients for the full price of airline tickets and other travel-related expense, but privately, the firm negotiated discounts and rebates that they then got at the end of the year based upon total amounts spent. The clients did not know anything of the back-end discounts and rebates the firm was getting; therefore, they were being charged more than the firm’s true out-of-pocket expenses for the items. In October 2001, the firm finally stopped taking airline rebates completely. The company started structuring all discounts as front-end price reductions that would be passed on to the clients. In the professional environment, there are two main areas in which ethical behavior is required. The first point concerns the behavior of the employee at work, in dealing with colleagues, with supervisors and subordinates and also with customers, the second point concerns the behavior of the company itself against its customers, its employees and all others who may are concerned from company. Also you have to distinguish between descriptive and normative ethics. Descriptive ethics is concerned with describing, characterizing, and studying the morality of a people, an organization, a culture, or a society. [†¦] It focuses on â€Å"what is† the prevailing set of ethical standards in the business community, specific organizations, or on the part of specific managers. [†¦] Normative ethics is concerned with supplying and justifying a coherent moral system of thinking and judging. [†¦] It deals more with â€Å"what ought to be† or â€Å"what ought not to be† in terms of business practices. Carroll, Buchholtz, 2008:242,243) So it’s rather impossible for a large company such as PwC to adhere to all these ethical values. These values can be quickly lost in the general public, because everywhere, they are trying to make money and advance the business, whether this ethical behavior is observed or ignored. Neal A. Roberts was constantly trying to uncover the corrupt business of the company, because he has a higher ethical consciousness and does not want PwC to get away with its wrong behavior. Identify the ethical issues in this case. There are three ethical issues in this case. Firstly the cheating on customers out of discounts. The firm PwC earns millions of dollars on rebates, which are not being returned to the clients in form of savings, but rather, the firm was keeping these rebates for themselves. The second ethical issue is that PwC is giving false information to the firm’s clients, by telling them a wrong amount for the airline tickets and other travel expenses. The last ethical issue is the cover-up of the firm’s corrupt activity. The company PwC does not tell their clients and their employees about the firm’s illegal behavior. All these ethical issues belong to the organizational level (or firm level). â€Å"[†¦] These issues may carry consequences for the company’s reputation and success in the community and also for the kind of ethical environment or culture that will prevail on a day-to-day basis at the office. In addition, how the issue is handled may have serious organizational consequences† (Carroll, Buchholtz, 2008:289,290). [A] survey conducted by the Ethics Resource Center reveal what managers and employees are up against. † There you can see, that 19 percent of the asked employees mentioned â€Å"lying to employees, customers, vendors, or the public† (Carroll, Buchholtz, 2008:290) is one of the most â€Å"questionable practices that employees today face in their work lives† (Carroll, Buchholtz, 2008:291). Who are the stakeholders and what are their stake s? The Stakeholders in case 14 are the customers, the federal government, the company PwC, the partners in business and the employees. The customer’s stakes are to get the right service for the money they paid, to get good quality and to be treated honest and fair. But in this case the customers are not getting the rebates that they should be rewarded. Furthermore the stakes of the federal government are that the company PwC can pay the taxes and acts legally and ethically. However, the federal government was not only lied to about speculations and regulations, but they were also lied to as the customers themselves. Moreover the stakes of PwC are that they can keep on the market with the other companies, that their employees are motivated nd make a good work, that their company is creditworthy, so in other words liquidity is given, that they have many customers and good conditions for suppliers. The stakes of the partners in business are that they want to know how the competitive company PwC is in the market and how big their market shares are. But the other businesses are getting tarnished. At last the emplo yee’s stakes are to work in a nice working atmosphere, to get fair wages and also to be treated honest and fair. What is your appraisal of the ethics of the travel expense billing practices described in the case? What are the ethical arguments for and against them? My appraisal of the ethics of the travel expense billing practices described in the case is what the company PwC did is wrong, because it is not right and fair. They violate consumer rights, employee rights and shareholder rights by offending against the main ethical principles, such as the â€Å"Respect for Persons†, the â€Å"Principle of Beneficence† and the â€Å"Principle of Justice†. In this connection ‘Respect for Persons’ means that individuals should be treated as autonomous agents and that persons with diminished autonomy are entitled to protection. Further the ‘Principle of Beneficence’ indicates that â€Å"persons are treated in an ethical manner not only by respecting their decisions and protecting them from harm, but also by making efforts to secure their well-being. [†¦ ]Two general rules have been formulated as complementary expressions of beneficent actions in this sense: (1) do not harm and (2) maximize possible benefits and minimize possible harms. As with all hard cases, the different claims covered by the principle of beneficence may come into conflict and force difficult choices. † Moreover the ‘Principle of Justice’ says that â€Å"[†¦] equals ought to be treated equally. † (http://www. stmarys-ca. edu/institutional-review-board/basic-ethical-principles) The company’s behavior meets the basic level of the CSR pyramid, which says â€Å"be profitable†, but on the other side it goes against legal, ethical and philantropical responsibilities. [†¦] In most decisionmaking situations, ethics, economics, and law become the central expectations that must be considered and balanced against each other in the quest to make wise decisions† (Carroll, Buchholtz, 2008:249), but in this case, the company does not obey this rule. PwC only refers to the ethical basis â€Å"be profitable† and ignores the other responsibilities, which makes the whole behavior of the firm illegal and not ethical.

Hypo Group Alpe Adria Analysis

Hypo Group Alpe Adria Analysis 1. General information about Hypo Group Alpe Adria Hypo Group Alpe Adria is an international financial group with more than 380 banking and leasing locations in twelve European countries: Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and the Ukraine. The group has a rich historical background. Roots of Hypo Group Alpe Adria date way back in 1896 when the group was founded. Consequently, it has accumulated more than one hundred years of business experience. In the beginning of its activities, it concentrated on financing public institutions and housing construction. Hypo KÃ ¤rnten as it was then known became a universal bank in 1982. In 1988 the Bank took the first step on the road to international expansion by opening a leasing subsidiary in Udine, Italy. It became a public limited company in 1991, and in 1992 Grazer Wechselseitige Versicherung joined the Province of Carinthia as the second shareholder. This marked the beginning of a new era for Hypo Alpe-Adria-Bank. With cross-border activities in twelve countries of the Alps Adriatic region[1], the Hypo Group Alpe Adria has a unique position in the economic area constituted by South Eastern Europe. Its network of branches and offices exists in Austria, Italy and Germany, from Slovenia through Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Macedonia, Hungary, Bulgaria and the Ukraine. Business priorities in the operations of Hypo Group Alpe Adria are the strategic business sectors banking and leasing, with the focus on a common goal: contribution to the prosperity of the Alps Adriatic region and of the people living in it. Hypo Group Alpe Adria is committed to pursuing its goal of becoming the leading commercial bank in the Alps Adriatic region. 1.2. Mission and Strategy The mission of the Group is the following: instead of pursuing global presence as a goal, Hypo Group Alpe Adria is more locally oriented. In the Alps to Adriatic region, with its cross-border markets, it is local market knowledge at a very personal and emotional level, which is crucial. Personal contact with the customers represents the basis of mutual trust for the Group. For this reason the Group sees its relationships as partnerships, which extend far beyond simple money issues. According to the Group, success can only be achieved through human contacts, and it can only be measured in terms of personal relationships, so that partnership at a personal level is the Groups ultimate ideal. Hypo Group Alpe Adria leaves the goal of worldwide presence to the global players. As a leading regional player in the Alps to Adriatic area, it concentrates on the southeastern markets, with the motto banking business is peoples business, confirming its nonnegotiable customer orientation. Respecting differences, growing together and sharing successes with others these are the cornerstones of partnerships with customers on which the business structures of the Group are based. Having in mind that the fundamental strategy of the Group is to achieve growth in the Alps to Adriatic region, Hypo Group Alpe Adria has been pursuing its visionary strategy since 1993 with great success: to establish and develop a strong financial services Group in the Alps to Adriatic region which combines the highly developed Northern Italian, Germany and Austrian business cultures with growth market opportunities in Hungary, Slovenia, Croatia, Bosnia Herzegovina, Serbia, Montenegro, Bulgaria, Macedonia and the Ukraine. As a result, the Group plays a key role in directing funds and economic development to and in the region. Up till now, its successful expansion has given Hypo Group Alpe Adria intensive coverage of the areas, which in coming years will become its home markets. Additionally, long term involvement and commitment are priorities of the Group. Hypo Group Alpe Adria has established itself as a strong and reliable business partner in the Alps to Adriatic region. Its involvement in each country represents a long term commitment, so that businesses operating in any of these countries have the certainty and security they need in order to develop their activities. The Group is actively involved in developing local economies, and consequently, this contributes to the foundations of local prosperity. Furthermore, preserving independence and regional identity is one of the cornerstones of the Groups philosophy. This fact gives customers and business partners the certainty that they are handling their business with a dynamic and internationally minded bank which at the same time is at home in each of the individual regions. Hypo Group Alpe Adria is close to its customers in all the countries it operates in, thanks to its emphasis on independence and un-bureaucratic decentralized structures. 1.4. Regional presence of Hypo Group Alpe Adria It is important to underline that the expansion of Hypo Group Alpe Adria into its core market, the Alps to Adriatic Region, followed gradually. The establishment of the first Austrian bank branch in Vicenza (Italy), under EU law followed with Austrias accession to the EU in 1995. In the same year leasing companies were established in Ljubljana (Slovenia) and Zagreb (Croatia). In the upcoming years further leasing outlets were opened in Slovenia and the expansion of the branch network in Italy and Croatia. In 1997 the number of staff at Hypo Group Alpe Adria went over the barrier of five hundred employees, accompanied by the start of construction of the present Klagenfurt (Austria) headquarters, which was completed in three phases by 2002. By the beginning of the new millennium, Hypo Group Alpe Adria already employed over one thousand people. In the following year it entered the market in Bosnia and Herzegovina. In 2002, Hypo Group Alpe Adrias expansion penetrated into the market of Serbia and Montenegro. The Groups dynamic progress continued in 2003, when it was announced as investor of the year in Bosnia and Herzegovina, opened a leasing branch in Munich (Germany), founded the Biogaspark Alpe Adria and launched tourism initiatives in Carinthia (Austria), starting the Schlosshotel Velden project. Hypo Group Alpe Adria is today active in Austria, Italy, Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and Ukraine. In 2005 it numbered approximately 5000 employees at over 250 locations. The year of 2006 has been extremely important for the Group and it conducted strategically important expenditure decisions. It founded Hypo Alpe Adria Bank a.d. in Podgorica (Montenegro), Hypo Alpe-Adria-Rent d.o.o. in Belgrade (Serbia) and Hypo Alpe-Adria-Leasing OOD in Sofia (Bulgaria). The principal company of Hypo Group Alpe Adria is Hypo Alpe Adria Bank International AG, which has its head office in Klagenfurt (Austria). Its owners are BayernLB (67.08%), the GRAWE group (20.48%), KÃ ¤rntner Landesholding (12.42%) and Hypo Alpe Adria Mitarbeiter Privatstiftung (0.02%). The network of Hypo Group Alpe Adria currently has around 7,500 employees serving more than 1.3 million consumers. 2. Hypo Group Alpe Adria in Serbia Hypo Group Alpe Adria conducts its business activities in Serbia from 2002, as a part of the Hypo Alpe Adria Bank International AG Klagenfurt, which originally operated only in the territory of Austria. In the past couple of years, the Group began with its dynamic expansion in the international market, which consequently resulted in great success: the Group became one of the most successful financial institutions in the Alps Adriatic region, with approximately 7500 employees and more than 1.3 million clients in twelve countries. When we arrived to the Serbian market, we made a thorough analysis of finance, economy and legal sector, as well as the political situation of the country, based on which we have determined that Serbia will become one of the most important countries in our network. Serbia has enormous potential and we plan to invest in this country in the future and to become one of the leading financial institutions of the country. (Markus Ferstl, former Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) Having in mind that Hypo Group Alpe Adria`s strategic business sectors are banking and leasing, the Serbian market was firstly penetrated in the leasing sector. Leasing represents a relatively new form of financing in the Serbian market. Therefore, a leasing company bearing the name Hypo Alpe Adria Leasing d.o.o., was established in 2002, and it gained a leading position from the very beginning of its activities. The company remained the leader till present time with a cumulative market share of 35.19% in all segments of financing. Hypo Alpe Adria Leasing d.o.o. Beograd currently employs 136 people in affiliating offices throughout Serbia, including Belgrade, Novi Sad, Cacak, NiÃ… ¡, Subotica, Sombor, Zrenjanin, Becej, VrÃ… ¡c, Ã…  abac, Kragujevac and KruÃ… ¡evac. Additionally, not long after the establishment of Hypo Alpe Adria Leasing d.o.o. in Serbia, the bank by the name Hypo Alpe Adria Bank a.d. Beograd was founded in 2002. In just eight moths of business operations in Serbia, the newly founded bank achieved a growth rate of 853%, which exceeded all expectations. Hypo Alpe Adria Bank a.d. Beograd is currently one of the top five financial institutions in Serbia, with a market share of 8.55% and first-class and diversified portfolios. Additionally, it employs more than 800 people and has developed a rich business network consisting of affiliates in almost all bigger cities in Serbia, taking into consideration the headquarters of the company located in Belgrade, in the Business Center Usce where the other member companies of the Group are located[2]. Hypo Alpe Adria Securities a.d. Beograd was founded in 2004. The company is ranked among the top five broker companies in the market of shares and of old savings bonds trading. The youngest company of the Group is Hypo Alpe Adria Rent d.o.o. Beograd, which is the first financial institution in Serbia to offer the possibility of operational leasing for the clients. During the present research, special focus will be on the bank and the leasing company operating in within the system of Hypo Alpe Adria Group. 3. Hypo Alpe Adria Bank a.d. Beograd In order to proceed with the research on Hypo Alpe Adria Bank a.d. Beograd, it is necessary to explain the circumstances in which the banking sector in Serbia existed from 1990s till present time. Disintegration and collapse of socialist Yugoslavia in the beginning of the 1990s announced the so-called lost decade, meaning that major structural features and weaknesses of the banking system were preserved or additionally deteriorated and the overall situation became desperate. The main characteristics of 1990s were losses of markets, repeated wars, economic sanctions and international isolation of the country. Mismanagement and pervasive corruption were main factors, which contributed to the degeneration of the economy. After the major hyperinflation, which occurred in 1993 and 1994, 90 % of all bank loans were perceived as bad. Unprofitable and non-performing foreign currency balance sub-balances dominated balance sheets. One of the main priorities in the reform agenda of the new Serbian authorities, which took over in 2000 was bank restructuring. The essence of the strategy was to undertake bank rehabilitation and re-capitalization only in the cases when it was expected that the banks could be viable institutions with good prospects for privatization through sale to strategic investor at a reasonable price and only if it can be implemented with identifiable fiscal resources. In the beginning of 2002, Serbian authorities decided to conduct one of the boldest bank resolution measures undertaken in transition economies: they liquidated four large and deeply insolvent banks, which accounted for 60% of the book value of the sectors asset and for about two thirds of outstanding commercial credit to non financial sector. Furthermore, banking legislation and regulations were improved[3]. After the first major wave of reform, credit institutions have become more attentive in lending money to the real sector which was still very week. The government immediately acted on attracting foreign investors since there was an urgent need for such a thing. Consequently, from the late 2000 to December 2002, National Bank of Yugoslavia (the central bank) issued eight bank licenses, out of which seven were for the foreign owned banks. Internationalization and privatization of the Serbian banking industry continued in 2005. The share of the market accounted for by foreign banks rose to 67.52%. Out of the ten largest banks, seven are foreign. Successful sales of Serbian banks to foreign financial institutions provided a vigorous stimulus to the countrys banking industry. Total assets of all banks in 2005 jumped by 40.4% compared with the previous year, to 9.07 billion euros. Strong increases in lending to private and business customers were the main forces, which were driving growth. Progress was also made in restoring the confidence of domestic savers: total deposits at the end of 2005 amounted to 5 billion euros. Foreign banks which penetrated the Serbian market played an important role in restoring confidence in the sector and have gathered a significant share of new deposits. One of these banks was Hypo Alpe Adria Bank a.d. Beograd. Hypo Alpe-Adria Banks involvement in the Serbian market began in December 2002, when it acquired Depozitno-kreditna banka. The Austrian bank concluded the purchase of 86.6% of the Serbian Depozitno-Kreditna Banka, founded May 22nd 1991, whose registered offices were in Belgrade. At the shareholders meeting held on October 8th 2002, the Banks name was changed to Hypo Alpe-Adria-Bank a.d., the capital increase to EUR 5.5 million was resolved, and the new Supervisory Board was appointed. The headquarters of to Hypo Alpe-Adria-Bank a.d., the member of the Hypo Group (after Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina and Liechtenstein), are located in the new part of Belgrade New Belgrade. Referring to total assets, Hypo Alpe-Adria-Bank a.d. is Serbias fourth-largest bank with a market share of 6.47 %. Furthermore, approximately 900 employees are currently working for the Bank in a total of forty-one branch offices throughout Serbia. Market share of top five banks in Serbia (Source: National Bank of Serbia available at http://www.nbs.rs/export/internet/latinica/50/50_5.html) After just several months of its operations in Serbia, the Bank has established itself as a recognizable part of the Serbian financial scene. In its first two years of its activities, Hypo concentrated on corporate customers. The Bank has achieved a particular competitive advantage in the corporate sector with its long-term investment lending. Efforts to develop private customer business began in 2004. The specific focus gradually switched to the housing construction market, which was performing excellently. When we arrived to the Serbian market in 2002, we were among the first ones and there had been only six foreign banks operating in the market. We have used that window of opportunity, the situation when there had been few foreign banks present, in order to develop our credit portfolio. In that period, we had the opportunity to finance some of the most successful companies in Serbia, as well as to develop well-balanced portfolio, which we diversified over the years. Special attention was dedicated to retail sector, mostly in the field of house loans. Additionally, we have formed a special unit for financing of small and medium sized enterprises and this has become one of our corporate priorities, having in mind that these companies are often suppliers and partners of the big companies we already cooperate with. Other than that, our focus is on food industry, agriculture, pharmaceutical and chemical industry. (Vladimir Cupic, Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) The Bank is organized in the following sectors and departments: Corporate sector Retail sector Sector of financing public enterprises and local community units Treasury sector Investment banking HR department Economic analysis department Sector settlement Market support sector Logistics sector Sector of organization and information technology Legal department Department of business control harmonization Marketing department The research process will only incorporate the sectors, which are relevant for the research question of the thesis. 3.1. Corporate sector From the very beginning of its operations in Serbia, the Bank has established an extremely developed corporate sector, which quickly expanded in the sense of different departments within the sector, as well as the number of employees. The corporate sector of Hypo Alpe Adria Bank quickly achieved competitive advantage in comparison to other banks in Serbia. Various departments are organized within the sector: Credit department Small and medium enterprises (transferred to the Retail sector in 2006) International financing Products and services of the corporate sector are concentrated on the client and its needs, and include the following: Investment loans (loans approved for the purpose of purchase of machines, equipment, land, real estate) Framework loans (exceeding permissible minus on the account, eskont of bills and revolving lines) Documentary operations (guarantees, credits, purchase of receivables and inkaso) Loans for working capital Till 2006 Hypo Alpe Adria Bank mainly focused on long term corporate loans, which were given to the big corporate clients. Since then, it strategically refocused on small and medium sized enterprises and expanded its offer of products. Corporate sector is known for its extremely innovative products and services offered to the clients. The innovation, which was introduced by the Bank in the market of Serbia, is the so-called cross border financing. This type of financing is dedicated to the clients that operate in more than two countries. The financing capital is actually provided from outside Serbia and offered to the clients under much better conditions than the ones, which are present in the Serbian market. Additionally, the Bank provides special guarantees for the clients within the Hypo Group, and in this way supports their business activities in other countries. Furthermore, another product, which is particularly innovative, was introduced in 2004 and it is called the revolving line. By using this product, clients are automatically enabled to use other additional products, according to their needs (dinar and foreign currency loans, working capital loans, guarantees etc.). The revolving line can be used by big corporate clients, as well as small and medium sized enterprises and entrepreneurs. Being a strategic branch of the Serbian economy, agriculture is one of the top priorities of the corporate sector. The Bank has been extremely active in financing agricultural production: individual agricultural manufacturers have the possibility to finance basic and working capital. Cross selling activities refer to the presentation of banks products from other sectors within the Bank. Acquisition of new clients also represents one of the fundamental operations of the corporate sector. It is particularly important since it is the basis of the planned growth of deposits, as the fundamentals for the primary sources. Special attention within the sector is dedicated to project and structural financing, like: financing of projects for the market or long term exploitation, purchase of shares, mergers / acquisitions of companies. 3.2. Human resource (HR) department and relationship towards employees HR department of Hypo Alpe Adria Bank was established in May of 2003 and has developed its activities at a very rapid pace, due to the fact that the number of employees was increasing intensively. In the very beginning of its operations in Serbia, the bank had a total of 27 employees and in just one year the number increased to 323 employees. In 2005, the growth trend continued and the number of the bank staff reached 531 people. Finally, on the closing date, 31 December 2008, Hypo Alpe-Adria-Bank a.d., Beograd had 871 employees. The increase of the number of employees is the result of the extension of the branch office network. Furthermore, additional employees were recruited in the headquarters to cater for the increasing customer demands. Within the initial process of selection and engagement of young experts, 600 potential candidates have been interviewed. Furthermore, database containing more than 1500 biographies of interested candidates was created, which points out to the fact that young people of Serbia are very keen on participating in the creation of modern multinational companies. One of the key priorities of the HR department from the very beginning of its existence was to enable quick integration of new employees into the system. Secondly, the Bank immediately started with the implementation of the Hypo standards, creation of the corporate identity and team atmosphere in the institution. Additionally, a very important strategic goal for the department was to become the source of educational staff, which would be capable of taking on new jobs, initiatives and development. In that sense, many of the employees, who have already acquired standards of the corporation and business modalities, have obtained leading positions within the Bank as the heads of various sectors. As far as the age structure is concerned, majority of employees of the Bank belong to the age group 30 39 years old, as it is shown in the diagram below. Additionally, 47% of all employees have acquired university education, while 33% of employees have secondary education. Activities of HR department are focused in three directions: administration, finance and education. In the area of administration, the department is handling recruitment process and hiring of new people who are competent and can contribute to the environment of the Bank. In the field of finance, the so called time management program is being implemented within the department, referring to the planning of the budget which will be used for the purpose of staff education and various bonus systems realized through completed targets. Having in mind the fact that, contemporary flows of banking operations worldwide demand constant education of the staff in all areas of the business, HR department takes particular notice of education of employees. The department is conducting educational trainings in various forms: motivation trainings, special skills development courses and language courses. This contributes to the raising of the efficiency level of the staff. Educational trainings are organized internally and externally. Some of the most important types of trainings, depending on the sector are: Cross selling courses Microsoft Office Excel seminars Insurance trainings, which enables the participants to obtain the license of the insurance mediator Small and medium sized enterprises trainings Seminars for the sale of pension and investment funds CDO`s and Credit linked trainings Specialist courses MCPD and MCITP Database Administrator for staff in the sector for informational technologies System Oriented Management course 1 and 2 Optional modules Top executive Education Public Finance Basic Training Project management Train the Trainer Project Management for Top Management Cross selling courses for account managers are particularly important for the activities of the Bank, in order to introduce existing clients of the Bank with new products and services. In this way, account managers tend to ensure that the additional product or service is being sold to the client, while at the same time enhancing the value the client gets from the Bank. Moreover, employees have the opportunity of expanding their knowledge in seminars jointly organized in cooperation with relevant public institutions, such as the National bank of Serbia, Association of Banks in Serbia, Serbian Chamber of Commerce, Institute for Business research and other external providers, as well as trainings related to international accounting standards. Having in mind that the Bank operates in twelve countries and that everyday communication involves the use of foreign languages, English courses are provided for all employees, at the expense of the Company. Additionally, certain numbers of employees who occupy the positions, which are directly linked to the headquarters of the Group in Austria, take courses of German language, whose expenses are also borne by the Company. Particularly relevant project of the department was realized in 2008, when the Bank established its internal employee training center. The main goal of the project was to make the best possible use of the existing knowledge and the practical experience of the staff. The center was formed in order to initiate internal transfer of knowledge among employees, information sharing, better communication, which consequently leads to better work performance and improvement of inter-personal relations within the Bank. This modern and completely technically equipped space is intended for internal and in house trainings, seminars and workshops for employees. Additionally, several types of trainings are conducted within the Center: cross selling workshops, Hypo 1 a tool which helps the staff get acquainted about other sectors besides their own, small and medium size enterprises trainings, etc. In just three months after its opening, more than 400 employees have participated in organized trai nings, and in one year more than 900 employees successfully passed over 30 internal educational and development programs of the center, which consequently justified the original expectations set by the management of the Bank. In addition, there is no doubt that one of the key priorities of the Bank is employee satisfaction. HR department in Hypo Bank actively conducts the employee assessment programs, which are incorporated in the employee satisfaction program. Originally, the program was based on yearly interviews of employees and their superiors on the subject of work efficiency and success, through self evaluation done by the employee, and the evaluation obtained from the superior. In order to upgrade the program, in 2007 HR department decided to introduce new actions. One of these actions was employee satisfaction survey. This type of survey is conducted among all employees in the end of every working year, and concentrates on the four most important areas of employee satisfaction: general satisfaction with work and work conditions, communication and interpersonal relations, leadership, bonus systems and career opportunities. Achieved results from the survey serve as the basis for strategy planning for the upcoming years. This is particularly important in order to include the opinion of the staff in the process of future strategy defining and decision making, so that everyone can benefit from it. Furthermore, obtained results were than given to the HR agency Advance Response International that deals with HR issues, and in this way anonymity and objectivity of the research was achieved. At this point, it is necessary to highlight that Hypo Bank has developed cooperation with several human resource agencies for the purpose of various types of train ings: project management, leadership and management, credit and market risk, etc. Asides from the efforts, which are focused on the improvement of communication among employees, inter-personal relations and management, the management of the Bank puts special emphasis on professional development of the middle and top management members. For that purpose, development center operating within the HR department was established in order to assess development necessities of the staff belonging to these levels of management. The center analyses results of interviews, surveys and supervisors suggestions, and consequently creates individual development plan for every employee. Another type of development plan created in the center, is team development plan, which is implemented on the entire teams working in specific sectors. In order to do business well, you need to have products of good quality, but asides from that, you need to have excellent staff. Therefore, we invest a lot in education and training of our employees. For example, in the second quarter of 2006, we realized a special trainee project. We hired motivated young people who had just completed their university education and we enabled them to pass specific trainings throughout the entire Group in two years, in order to get familiar with every aspect of the company business activities. They didnt have trainings only in Serbia; they also visited other Hypo companies abroad. As we often like to say in the Group: our greatest assets are our employees and for that reason we will continue to invest in their internal and external education. (Marija Sutanovac, Head of the HR department of the Hypo Alpe Adria Bank a.d. Beograd). Important point, which should be highlighted in this section, is opportunity for scholarships for university education of employees. Each year Bank supports further education of thirty selected employees and provides funding for their studies. This program represents a special kind of acknowledgement for talented and hard working employees. Furthermore, in cooperation with the Serbian Business Club Privrednik[4], the Bank provides scholarships for ten students, which are not employees of the bank, and in this way shows its support directed to the young people of Serbia. In this way, talented and perspective students have the opportunity to be in touch with the people from the most significant and influential companies in Serbia, and can find employment opportunities upon their graduation asides form their scholarships. 3.3. Marketing department and relationship towards clients Marketing department had a challenging task of providing support to all business activities of the Bank, once it penetrated the Serbian market. The key priority of the department was to create a positive image of the Hypo Bank, as well as to inform the Serbian population about its products and services. Corporate image strategy emphasized values of the bank: its tradition, innovative approach to business, Alps-Adriatic philosophy based on the regional banking client focus, partnership, security, corporate responsibility and independence. The main focus of the department was to create and promote the corporate image, which emphasizes that Hypo Alpe Adria Bank a.d. Beograd takes care of its clients in the same way as it takes care of its employees, and that it is a reliable partner who nurtures the local community in which it exists. The main element of the departments strategy was to create two-way communication with the clients: to reach the clients, and to hear their needs as well. For that purpose, the Bank introduced a special program called clients suggestions. Clients of the Bank have the possibility of sending their suggestions, comments, Hypo Group Alpe Adria Analysis Hypo Group Alpe Adria Analysis 1. General information about Hypo Group Alpe Adria Hypo Group Alpe Adria is an international financial group with more than 380 banking and leasing locations in twelve European countries: Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and the Ukraine. The group has a rich historical background. Roots of Hypo Group Alpe Adria date way back in 1896 when the group was founded. Consequently, it has accumulated more than one hundred years of business experience. In the beginning of its activities, it concentrated on financing public institutions and housing construction. Hypo KÃ ¤rnten as it was then known became a universal bank in 1982. In 1988 the Bank took the first step on the road to international expansion by opening a leasing subsidiary in Udine, Italy. It became a public limited company in 1991, and in 1992 Grazer Wechselseitige Versicherung joined the Province of Carinthia as the second shareholder. This marked the beginning of a new era for Hypo Alpe-Adria-Bank. With cross-border activities in twelve countries of the Alps Adriatic region[1], the Hypo Group Alpe Adria has a unique position in the economic area constituted by South Eastern Europe. Its network of branches and offices exists in Austria, Italy and Germany, from Slovenia through Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Macedonia, Hungary, Bulgaria and the Ukraine. Business priorities in the operations of Hypo Group Alpe Adria are the strategic business sectors banking and leasing, with the focus on a common goal: contribution to the prosperity of the Alps Adriatic region and of the people living in it. Hypo Group Alpe Adria is committed to pursuing its goal of becoming the leading commercial bank in the Alps Adriatic region. 1.2. Mission and Strategy The mission of the Group is the following: instead of pursuing global presence as a goal, Hypo Group Alpe Adria is more locally oriented. In the Alps to Adriatic region, with its cross-border markets, it is local market knowledge at a very personal and emotional level, which is crucial. Personal contact with the customers represents the basis of mutual trust for the Group. For this reason the Group sees its relationships as partnerships, which extend far beyond simple money issues. According to the Group, success can only be achieved through human contacts, and it can only be measured in terms of personal relationships, so that partnership at a personal level is the Groups ultimate ideal. Hypo Group Alpe Adria leaves the goal of worldwide presence to the global players. As a leading regional player in the Alps to Adriatic area, it concentrates on the southeastern markets, with the motto banking business is peoples business, confirming its nonnegotiable customer orientation. Respecting differences, growing together and sharing successes with others these are the cornerstones of partnerships with customers on which the business structures of the Group are based. Having in mind that the fundamental strategy of the Group is to achieve growth in the Alps to Adriatic region, Hypo Group Alpe Adria has been pursuing its visionary strategy since 1993 with great success: to establish and develop a strong financial services Group in the Alps to Adriatic region which combines the highly developed Northern Italian, Germany and Austrian business cultures with growth market opportunities in Hungary, Slovenia, Croatia, Bosnia Herzegovina, Serbia, Montenegro, Bulgaria, Macedonia and the Ukraine. As a result, the Group plays a key role in directing funds and economic development to and in the region. Up till now, its successful expansion has given Hypo Group Alpe Adria intensive coverage of the areas, which in coming years will become its home markets. Additionally, long term involvement and commitment are priorities of the Group. Hypo Group Alpe Adria has established itself as a strong and reliable business partner in the Alps to Adriatic region. Its involvement in each country represents a long term commitment, so that businesses operating in any of these countries have the certainty and security they need in order to develop their activities. The Group is actively involved in developing local economies, and consequently, this contributes to the foundations of local prosperity. Furthermore, preserving independence and regional identity is one of the cornerstones of the Groups philosophy. This fact gives customers and business partners the certainty that they are handling their business with a dynamic and internationally minded bank which at the same time is at home in each of the individual regions. Hypo Group Alpe Adria is close to its customers in all the countries it operates in, thanks to its emphasis on independence and un-bureaucratic decentralized structures. 1.4. Regional presence of Hypo Group Alpe Adria It is important to underline that the expansion of Hypo Group Alpe Adria into its core market, the Alps to Adriatic Region, followed gradually. The establishment of the first Austrian bank branch in Vicenza (Italy), under EU law followed with Austrias accession to the EU in 1995. In the same year leasing companies were established in Ljubljana (Slovenia) and Zagreb (Croatia). In the upcoming years further leasing outlets were opened in Slovenia and the expansion of the branch network in Italy and Croatia. In 1997 the number of staff at Hypo Group Alpe Adria went over the barrier of five hundred employees, accompanied by the start of construction of the present Klagenfurt (Austria) headquarters, which was completed in three phases by 2002. By the beginning of the new millennium, Hypo Group Alpe Adria already employed over one thousand people. In the following year it entered the market in Bosnia and Herzegovina. In 2002, Hypo Group Alpe Adrias expansion penetrated into the market of Serbia and Montenegro. The Groups dynamic progress continued in 2003, when it was announced as investor of the year in Bosnia and Herzegovina, opened a leasing branch in Munich (Germany), founded the Biogaspark Alpe Adria and launched tourism initiatives in Carinthia (Austria), starting the Schlosshotel Velden project. Hypo Group Alpe Adria is today active in Austria, Italy, Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and Ukraine. In 2005 it numbered approximately 5000 employees at over 250 locations. The year of 2006 has been extremely important for the Group and it conducted strategically important expenditure decisions. It founded Hypo Alpe Adria Bank a.d. in Podgorica (Montenegro), Hypo Alpe-Adria-Rent d.o.o. in Belgrade (Serbia) and Hypo Alpe-Adria-Leasing OOD in Sofia (Bulgaria). The principal company of Hypo Group Alpe Adria is Hypo Alpe Adria Bank International AG, which has its head office in Klagenfurt (Austria). Its owners are BayernLB (67.08%), the GRAWE group (20.48%), KÃ ¤rntner Landesholding (12.42%) and Hypo Alpe Adria Mitarbeiter Privatstiftung (0.02%). The network of Hypo Group Alpe Adria currently has around 7,500 employees serving more than 1.3 million consumers. 2. Hypo Group Alpe Adria in Serbia Hypo Group Alpe Adria conducts its business activities in Serbia from 2002, as a part of the Hypo Alpe Adria Bank International AG Klagenfurt, which originally operated only in the territory of Austria. In the past couple of years, the Group began with its dynamic expansion in the international market, which consequently resulted in great success: the Group became one of the most successful financial institutions in the Alps Adriatic region, with approximately 7500 employees and more than 1.3 million clients in twelve countries. When we arrived to the Serbian market, we made a thorough analysis of finance, economy and legal sector, as well as the political situation of the country, based on which we have determined that Serbia will become one of the most important countries in our network. Serbia has enormous potential and we plan to invest in this country in the future and to become one of the leading financial institutions of the country. (Markus Ferstl, former Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) Having in mind that Hypo Group Alpe Adria`s strategic business sectors are banking and leasing, the Serbian market was firstly penetrated in the leasing sector. Leasing represents a relatively new form of financing in the Serbian market. Therefore, a leasing company bearing the name Hypo Alpe Adria Leasing d.o.o., was established in 2002, and it gained a leading position from the very beginning of its activities. The company remained the leader till present time with a cumulative market share of 35.19% in all segments of financing. Hypo Alpe Adria Leasing d.o.o. Beograd currently employs 136 people in affiliating offices throughout Serbia, including Belgrade, Novi Sad, Cacak, NiÃ… ¡, Subotica, Sombor, Zrenjanin, Becej, VrÃ… ¡c, Ã…  abac, Kragujevac and KruÃ… ¡evac. Additionally, not long after the establishment of Hypo Alpe Adria Leasing d.o.o. in Serbia, the bank by the name Hypo Alpe Adria Bank a.d. Beograd was founded in 2002. In just eight moths of business operations in Serbia, the newly founded bank achieved a growth rate of 853%, which exceeded all expectations. Hypo Alpe Adria Bank a.d. Beograd is currently one of the top five financial institutions in Serbia, with a market share of 8.55% and first-class and diversified portfolios. Additionally, it employs more than 800 people and has developed a rich business network consisting of affiliates in almost all bigger cities in Serbia, taking into consideration the headquarters of the company located in Belgrade, in the Business Center Usce where the other member companies of the Group are located[2]. Hypo Alpe Adria Securities a.d. Beograd was founded in 2004. The company is ranked among the top five broker companies in the market of shares and of old savings bonds trading. The youngest company of the Group is Hypo Alpe Adria Rent d.o.o. Beograd, which is the first financial institution in Serbia to offer the possibility of operational leasing for the clients. During the present research, special focus will be on the bank and the leasing company operating in within the system of Hypo Alpe Adria Group. 3. Hypo Alpe Adria Bank a.d. Beograd In order to proceed with the research on Hypo Alpe Adria Bank a.d. Beograd, it is necessary to explain the circumstances in which the banking sector in Serbia existed from 1990s till present time. Disintegration and collapse of socialist Yugoslavia in the beginning of the 1990s announced the so-called lost decade, meaning that major structural features and weaknesses of the banking system were preserved or additionally deteriorated and the overall situation became desperate. The main characteristics of 1990s were losses of markets, repeated wars, economic sanctions and international isolation of the country. Mismanagement and pervasive corruption were main factors, which contributed to the degeneration of the economy. After the major hyperinflation, which occurred in 1993 and 1994, 90 % of all bank loans were perceived as bad. Unprofitable and non-performing foreign currency balance sub-balances dominated balance sheets. One of the main priorities in the reform agenda of the new Serbian authorities, which took over in 2000 was bank restructuring. The essence of the strategy was to undertake bank rehabilitation and re-capitalization only in the cases when it was expected that the banks could be viable institutions with good prospects for privatization through sale to strategic investor at a reasonable price and only if it can be implemented with identifiable fiscal resources. In the beginning of 2002, Serbian authorities decided to conduct one of the boldest bank resolution measures undertaken in transition economies: they liquidated four large and deeply insolvent banks, which accounted for 60% of the book value of the sectors asset and for about two thirds of outstanding commercial credit to non financial sector. Furthermore, banking legislation and regulations were improved[3]. After the first major wave of reform, credit institutions have become more attentive in lending money to the real sector which was still very week. The government immediately acted on attracting foreign investors since there was an urgent need for such a thing. Consequently, from the late 2000 to December 2002, National Bank of Yugoslavia (the central bank) issued eight bank licenses, out of which seven were for the foreign owned banks. Internationalization and privatization of the Serbian banking industry continued in 2005. The share of the market accounted for by foreign banks rose to 67.52%. Out of the ten largest banks, seven are foreign. Successful sales of Serbian banks to foreign financial institutions provided a vigorous stimulus to the countrys banking industry. Total assets of all banks in 2005 jumped by 40.4% compared with the previous year, to 9.07 billion euros. Strong increases in lending to private and business customers were the main forces, which were driving growth. Progress was also made in restoring the confidence of domestic savers: total deposits at the end of 2005 amounted to 5 billion euros. Foreign banks which penetrated the Serbian market played an important role in restoring confidence in the sector and have gathered a significant share of new deposits. One of these banks was Hypo Alpe Adria Bank a.d. Beograd. Hypo Alpe-Adria Banks involvement in the Serbian market began in December 2002, when it acquired Depozitno-kreditna banka. The Austrian bank concluded the purchase of 86.6% of the Serbian Depozitno-Kreditna Banka, founded May 22nd 1991, whose registered offices were in Belgrade. At the shareholders meeting held on October 8th 2002, the Banks name was changed to Hypo Alpe-Adria-Bank a.d., the capital increase to EUR 5.5 million was resolved, and the new Supervisory Board was appointed. The headquarters of to Hypo Alpe-Adria-Bank a.d., the member of the Hypo Group (after Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina and Liechtenstein), are located in the new part of Belgrade New Belgrade. Referring to total assets, Hypo Alpe-Adria-Bank a.d. is Serbias fourth-largest bank with a market share of 6.47 %. Furthermore, approximately 900 employees are currently working for the Bank in a total of forty-one branch offices throughout Serbia. Market share of top five banks in Serbia (Source: National Bank of Serbia available at http://www.nbs.rs/export/internet/latinica/50/50_5.html) After just several months of its operations in Serbia, the Bank has established itself as a recognizable part of the Serbian financial scene. In its first two years of its activities, Hypo concentrated on corporate customers. The Bank has achieved a particular competitive advantage in the corporate sector with its long-term investment lending. Efforts to develop private customer business began in 2004. The specific focus gradually switched to the housing construction market, which was performing excellently. When we arrived to the Serbian market in 2002, we were among the first ones and there had been only six foreign banks operating in the market. We have used that window of opportunity, the situation when there had been few foreign banks present, in order to develop our credit portfolio. In that period, we had the opportunity to finance some of the most successful companies in Serbia, as well as to develop well-balanced portfolio, which we diversified over the years. Special attention was dedicated to retail sector, mostly in the field of house loans. Additionally, we have formed a special unit for financing of small and medium sized enterprises and this has become one of our corporate priorities, having in mind that these companies are often suppliers and partners of the big companies we already cooperate with. Other than that, our focus is on food industry, agriculture, pharmaceutical and chemical industry. (Vladimir Cupic, Chairman of the Management Board of the Hypo Alpe Adria Bank a.d. Beograd) The Bank is organized in the following sectors and departments: Corporate sector Retail sector Sector of financing public enterprises and local community units Treasury sector Investment banking HR department Economic analysis department Sector settlement Market support sector Logistics sector Sector of organization and information technology Legal department Department of business control harmonization Marketing department The research process will only incorporate the sectors, which are relevant for the research question of the thesis. 3.1. Corporate sector From the very beginning of its operations in Serbia, the Bank has established an extremely developed corporate sector, which quickly expanded in the sense of different departments within the sector, as well as the number of employees. The corporate sector of Hypo Alpe Adria Bank quickly achieved competitive advantage in comparison to other banks in Serbia. Various departments are organized within the sector: Credit department Small and medium enterprises (transferred to the Retail sector in 2006) International financing Products and services of the corporate sector are concentrated on the client and its needs, and include the following: Investment loans (loans approved for the purpose of purchase of machines, equipment, land, real estate) Framework loans (exceeding permissible minus on the account, eskont of bills and revolving lines) Documentary operations (guarantees, credits, purchase of receivables and inkaso) Loans for working capital Till 2006 Hypo Alpe Adria Bank mainly focused on long term corporate loans, which were given to the big corporate clients. Since then, it strategically refocused on small and medium sized enterprises and expanded its offer of products. Corporate sector is known for its extremely innovative products and services offered to the clients. The innovation, which was introduced by the Bank in the market of Serbia, is the so-called cross border financing. This type of financing is dedicated to the clients that operate in more than two countries. The financing capital is actually provided from outside Serbia and offered to the clients under much better conditions than the ones, which are present in the Serbian market. Additionally, the Bank provides special guarantees for the clients within the Hypo Group, and in this way supports their business activities in other countries. Furthermore, another product, which is particularly innovative, was introduced in 2004 and it is called the revolving line. By using this product, clients are automatically enabled to use other additional products, according to their needs (dinar and foreign currency loans, working capital loans, guarantees etc.). The revolving line can be used by big corporate clients, as well as small and medium sized enterprises and entrepreneurs. Being a strategic branch of the Serbian economy, agriculture is one of the top priorities of the corporate sector. The Bank has been extremely active in financing agricultural production: individual agricultural manufacturers have the possibility to finance basic and working capital. Cross selling activities refer to the presentation of banks products from other sectors within the Bank. Acquisition of new clients also represents one of the fundamental operations of the corporate sector. It is particularly important since it is the basis of the planned growth of deposits, as the fundamentals for the primary sources. Special attention within the sector is dedicated to project and structural financing, like: financing of projects for the market or long term exploitation, purchase of shares, mergers / acquisitions of companies. 3.2. Human resource (HR) department and relationship towards employees HR department of Hypo Alpe Adria Bank was established in May of 2003 and has developed its activities at a very rapid pace, due to the fact that the number of employees was increasing intensively. In the very beginning of its operations in Serbia, the bank had a total of 27 employees and in just one year the number increased to 323 employees. In 2005, the growth trend continued and the number of the bank staff reached 531 people. Finally, on the closing date, 31 December 2008, Hypo Alpe-Adria-Bank a.d., Beograd had 871 employees. The increase of the number of employees is the result of the extension of the branch office network. Furthermore, additional employees were recruited in the headquarters to cater for the increasing customer demands. Within the initial process of selection and engagement of young experts, 600 potential candidates have been interviewed. Furthermore, database containing more than 1500 biographies of interested candidates was created, which points out to the fact that young people of Serbia are very keen on participating in the creation of modern multinational companies. One of the key priorities of the HR department from the very beginning of its existence was to enable quick integration of new employees into the system. Secondly, the Bank immediately started with the implementation of the Hypo standards, creation of the corporate identity and team atmosphere in the institution. Additionally, a very important strategic goal for the department was to become the source of educational staff, which would be capable of taking on new jobs, initiatives and development. In that sense, many of the employees, who have already acquired standards of the corporation and business modalities, have obtained leading positions within the Bank as the heads of various sectors. As far as the age structure is concerned, majority of employees of the Bank belong to the age group 30 39 years old, as it is shown in the diagram below. Additionally, 47% of all employees have acquired university education, while 33% of employees have secondary education. Activities of HR department are focused in three directions: administration, finance and education. In the area of administration, the department is handling recruitment process and hiring of new people who are competent and can contribute to the environment of the Bank. In the field of finance, the so called time management program is being implemented within the department, referring to the planning of the budget which will be used for the purpose of staff education and various bonus systems realized through completed targets. Having in mind the fact that, contemporary flows of banking operations worldwide demand constant education of the staff in all areas of the business, HR department takes particular notice of education of employees. The department is conducting educational trainings in various forms: motivation trainings, special skills development courses and language courses. This contributes to the raising of the efficiency level of the staff. Educational trainings are organized internally and externally. Some of the most important types of trainings, depending on the sector are: Cross selling courses Microsoft Office Excel seminars Insurance trainings, which enables the participants to obtain the license of the insurance mediator Small and medium sized enterprises trainings Seminars for the sale of pension and investment funds CDO`s and Credit linked trainings Specialist courses MCPD and MCITP Database Administrator for staff in the sector for informational technologies System Oriented Management course 1 and 2 Optional modules Top executive Education Public Finance Basic Training Project management Train the Trainer Project Management for Top Management Cross selling courses for account managers are particularly important for the activities of the Bank, in order to introduce existing clients of the Bank with new products and services. In this way, account managers tend to ensure that the additional product or service is being sold to the client, while at the same time enhancing the value the client gets from the Bank. Moreover, employees have the opportunity of expanding their knowledge in seminars jointly organized in cooperation with relevant public institutions, such as the National bank of Serbia, Association of Banks in Serbia, Serbian Chamber of Commerce, Institute for Business research and other external providers, as well as trainings related to international accounting standards. Having in mind that the Bank operates in twelve countries and that everyday communication involves the use of foreign languages, English courses are provided for all employees, at the expense of the Company. Additionally, certain numbers of employees who occupy the positions, which are directly linked to the headquarters of the Group in Austria, take courses of German language, whose expenses are also borne by the Company. Particularly relevant project of the department was realized in 2008, when the Bank established its internal employee training center. The main goal of the project was to make the best possible use of the existing knowledge and the practical experience of the staff. The center was formed in order to initiate internal transfer of knowledge among employees, information sharing, better communication, which consequently leads to better work performance and improvement of inter-personal relations within the Bank. This modern and completely technically equipped space is intended for internal and in house trainings, seminars and workshops for employees. Additionally, several types of trainings are conducted within the Center: cross selling workshops, Hypo 1 a tool which helps the staff get acquainted about other sectors besides their own, small and medium size enterprises trainings, etc. In just three months after its opening, more than 400 employees have participated in organized trai nings, and in one year more than 900 employees successfully passed over 30 internal educational and development programs of the center, which consequently justified the original expectations set by the management of the Bank. In addition, there is no doubt that one of the key priorities of the Bank is employee satisfaction. HR department in Hypo Bank actively conducts the employee assessment programs, which are incorporated in the employee satisfaction program. Originally, the program was based on yearly interviews of employees and their superiors on the subject of work efficiency and success, through self evaluation done by the employee, and the evaluation obtained from the superior. In order to upgrade the program, in 2007 HR department decided to introduce new actions. One of these actions was employee satisfaction survey. This type of survey is conducted among all employees in the end of every working year, and concentrates on the four most important areas of employee satisfaction: general satisfaction with work and work conditions, communication and interpersonal relations, leadership, bonus systems and career opportunities. Achieved results from the survey serve as the basis for strategy planning for the upcoming years. This is particularly important in order to include the opinion of the staff in the process of future strategy defining and decision making, so that everyone can benefit from it. Furthermore, obtained results were than given to the HR agency Advance Response International that deals with HR issues, and in this way anonymity and objectivity of the research was achieved. At this point, it is necessary to highlight that Hypo Bank has developed cooperation with several human resource agencies for the purpose of various types of train ings: project management, leadership and management, credit and market risk, etc. Asides from the efforts, which are focused on the improvement of communication among employees, inter-personal relations and management, the management of the Bank puts special emphasis on professional development of the middle and top management members. For that purpose, development center operating within the HR department was established in order to assess development necessities of the staff belonging to these levels of management. The center analyses results of interviews, surveys and supervisors suggestions, and consequently creates individual development plan for every employee. Another type of development plan created in the center, is team development plan, which is implemented on the entire teams working in specific sectors. In order to do business well, you need to have products of good quality, but asides from that, you need to have excellent staff. Therefore, we invest a lot in education and training of our employees. For example, in the second quarter of 2006, we realized a special trainee project. We hired motivated young people who had just completed their university education and we enabled them to pass specific trainings throughout the entire Group in two years, in order to get familiar with every aspect of the company business activities. They didnt have trainings only in Serbia; they also visited other Hypo companies abroad. As we often like to say in the Group: our greatest assets are our employees and for that reason we will continue to invest in their internal and external education. (Marija Sutanovac, Head of the HR department of the Hypo Alpe Adria Bank a.d. Beograd). Important point, which should be highlighted in this section, is opportunity for scholarships for university education of employees. Each year Bank supports further education of thirty selected employees and provides funding for their studies. This program represents a special kind of acknowledgement for talented and hard working employees. Furthermore, in cooperation with the Serbian Business Club Privrednik[4], the Bank provides scholarships for ten students, which are not employees of the bank, and in this way shows its support directed to the young people of Serbia. In this way, talented and perspective students have the opportunity to be in touch with the people from the most significant and influential companies in Serbia, and can find employment opportunities upon their graduation asides form their scholarships. 3.3. Marketing department and relationship towards clients Marketing department had a challenging task of providing support to all business activities of the Bank, once it penetrated the Serbian market. The key priority of the department was to create a positive image of the Hypo Bank, as well as to inform the Serbian population about its products and services. Corporate image strategy emphasized values of the bank: its tradition, innovative approach to business, Alps-Adriatic philosophy based on the regional banking client focus, partnership, security, corporate responsibility and independence. The main focus of the department was to create and promote the corporate image, which emphasizes that Hypo Alpe Adria Bank a.d. Beograd takes care of its clients in the same way as it takes care of its employees, and that it is a reliable partner who nurtures the local community in which it exists. The main element of the departments strategy was to create two-way communication with the clients: to reach the clients, and to hear their needs as well. For that purpose, the Bank introduced a special program called clients suggestions. Clients of the Bank have the possibility of sending their suggestions, comments,