A private bank, as a part of Comprehensive Internal Management Study, has opted to modernise the banking system. The situation is very tough for the banking players in the current dynamic scenario. The CEO of the bank wa

Answer 5(a) Banking sectors across the globe are facing a lot of challenges & opportunities to grow. In the banking sector the emergence of both private and public player/parties have created competition among each other and an opportunity for the customers. Customers have varied options to choose services offered by these banks. In such situation a private bank has two options to choose as put forth by its CEO and Chairman. The CEO of the bank wants to modernize the bank and sees the current situation as an opportunity. So, if the bank opts for growth strategy, it may go ahead with the decision of CEO, as it helps to expand the activities to achieve growth in sales, assets, profits or some combination as it is needed for the bank to sustain in the long run. Whereas, the Chairman of the bank wants to play safe by avoiding taking risk at a time when the situation is not very favorable. So he is opting for a stable strategy by making no change in the bank's current activities without any significant change in direction. It may be viewed as a lack of strategy by critic. As stability strategy may be appropriate for a successful organisation in a predictable environment. For any sector it is useful in the short run and can be dangerous if followed for too long.