The Great Recession, as the global financial meltdown has come to be called, has
had devastating effects on the global economic landscape - particularly on the
banking industry. While the big, multinational investment banks that were at the
heart of this crisis were hit most severely, with players such as Lehman Brothers
Inc. among others disappearing from the financial landscape, retail banks –
institutions primarily engaged in the standard banking business with private
customers – also suffered considerably from the global collapse of financial
markets.1 Unlike their multinational counterparts, however, retail banks cannot rely
on profitable mergers and acquisition activities or proprietary trading to boost
income once the economy picks up again. While the challenges created by the
Great Recession for retail banks are complex, they are not the only threat to longrun
profitability. In many markets – especially in the mature western European
ones, other dark clouds appear on the horizon. To name only a few, plummeting
sales, narrowing profit margins, consumers’ lack of confidence in the banking
system and operational cost problems threaten retail banks in mature markets
such as Germany.2 Postbank, a major German retail bank with a strong domestic
customer base is one of the players that have to make strategic adjustments to
cope with a changing economic landscape. But what will these strategic
adjustments be – and in which priority do they need to be undertaken? Although
literature on the financial crisis and expected changes in banking industry is
paramount, so far little attention has been given to showing how strategy in the
retail banking segment in the distinct geographic location of Germany will have to
look like for a specific player in the post financial crisis era.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. The Conceptual Framework of Business Strategy
- 2.1 What is Strategy?
- 2.2 Strategy as a Quest for Value
- 2.3 Different Types of Business Strategies: An Overview
- 2.4 Elements for a Successful Strategy Implementation
- 3. Economic Analysis for the Time Period Before and During the Financial Crisis
- 4. German Retail Banking in Transition – Plotting Strategy in the Aftermath of the Great Recession
- 4.1 The Structure of the German Banking Market
- 4.2 A Snapshot of the German Retail Banking Market
- 4.3 Postbank's Position in the Retail Banking Industry
- 4.4 German Retail Banking Strategy and the Great Recession
- 4.5 Routes to Sustained Profitability in the Post Financial Crisis Era
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This bachelor thesis analyzes the strategic changes necessary for business models in the German retail banking industry following the 2007-2008 financial crisis, using Postbank AG as a case study. The objective is to assess Postbank's existing strategy, identify challenges posed by the crisis, and propose strategic recommendations for sustained profitability.
- Impact of the 2007-2008 financial crisis on the German retail banking industry
- Analysis of Postbank AG's business model and strategic position
- Evaluation of different business strategy frameworks (market-based and resource-based views)
- Identification of key threats and opportunities for Postbank in the post-crisis environment
- Development of strategic recommendations for Postbank's future success
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter introduces the topic of strategic changes in the German retail banking industry after the financial crisis, focusing on Postbank AG. It outlines the paper's aim, which is to analyze Postbank's strategic response to the crisis and suggest potential improvements, and details the research approach used in the study.
2. The Conceptual Framework of Business Strategy: This chapter lays the groundwork for the analysis by establishing a theoretical framework for understanding business strategy. It explores various definitions of strategy, examines the creation and distribution of value (shareholder vs. stakeholder perspectives), and reviews different types of business strategies, including the market-based and resource-based views. The chapter concludes with a preliminary assessment of Postbank's strategy within this theoretical context.
3. Economic Analysis for the Time Period Before and During the Financial Crisis: This chapter provides the macroeconomic context for the study. It analyzes economic growth, business cycles, and the specific conditions leading up to and during the Great Recession, particularly focusing on factors such as low interest rates, securitization, and the US housing bubble. This analysis helps to understand the external pressures faced by the German retail banking sector and Postbank.
4. German Retail Banking in Transition – Plotting Strategy in the Aftermath of the Great Recession: This chapter dives into the German retail banking market, analyzing its structure, the competitive landscape (lending and savings/investments segments), and Postbank’s position within it. It examines the impact of the Great Recession on German retail banks, specifically Postbank, and critically assesses whether existing business strategies contributed to their difficulties. The chapter concludes by proposing strategic recommendations for Postbank to enhance its profitability and competitiveness in the post-crisis era.
Schlüsselwörter (Keywords)
German retail banking, Postbank AG, financial crisis, business strategy, market-based view, resource-based view, competitive advantage, strategic management, economic analysis, profitability, sustainable growth, strategic recommendations.
Frequently Asked Questions: Analysis of Postbank AG's Strategic Response to the Financial Crisis
What is the main topic of this document?
This document is a comprehensive preview of a bachelor thesis analyzing the strategic changes necessary for business models in the German retail banking industry following the 2007-2008 financial crisis, using Postbank AG as a case study. It aims to assess Postbank's existing strategy, identify challenges posed by the crisis, and propose strategic recommendations for sustained profitability.
What are the key objectives of the thesis?
The thesis objectives include analyzing the impact of the 2007-2008 financial crisis on the German retail banking industry, analyzing Postbank AG's business model and strategic position, evaluating different business strategy frameworks (market-based and resource-based views), identifying key threats and opportunities for Postbank in the post-crisis environment, and developing strategic recommendations for Postbank's future success.
What is the structure of the thesis?
The thesis is structured into four main chapters: An introduction outlining the scope and methodology; a chapter establishing a theoretical framework for understanding business strategy; a chapter providing macroeconomic context of the period before and during the financial crisis; and a final chapter focusing on the German retail banking market, Postbank's position within it, the impact of the crisis, and strategic recommendations for future success.
What theoretical frameworks are used in the analysis?
The thesis utilizes both market-based and resource-based views of business strategy as theoretical frameworks to analyze Postbank's strategic position and identify potential areas for improvement.
What specific aspects of Postbank AG are analyzed?
The analysis focuses on Postbank AG's business model, its strategic position within the German retail banking market, its response to the 2007-2008 financial crisis, and its prospects for sustained profitability in the post-crisis environment.
What kind of recommendations are provided?
The thesis concludes with strategic recommendations designed to enhance Postbank's profitability and competitiveness in the post-crisis era. These recommendations are grounded in the analysis of the German retail banking market, Postbank's specific circumstances, and the theoretical frameworks employed.
What is the scope of the economic analysis?
The economic analysis covers the macroeconomic conditions leading up to and during the Great Recession, focusing on factors such as low interest rates, securitization, and the US housing bubble. This analysis helps to understand the external pressures faced by the German retail banking sector and Postbank.
What are the key takeaways from the chapter summaries?
The chapter summaries provide a concise overview of each chapter's content, highlighting the key findings and arguments presented. They provide a roadmap for understanding the progression of the analysis from establishing theoretical foundations to proposing concrete strategic recommendations.
What are the key words associated with this thesis?
Key words include German retail banking, Postbank AG, financial crisis, business strategy, market-based view, resource-based view, competitive advantage, strategic management, economic analysis, profitability, sustainable growth, and strategic recommendations.
- Citar trabajo
- Tobias Pommerening (Autor), 2010, Strategic Changes for Business Models in the German Retail Banking Industry in the Post Financial Crisis Era, Múnich, GRIN Verlag, https://www.grin.com/document/159081
