The Research In Retail Business’s Core Competence Of Nanyang Commercial Bank (China) Limited Qingdao Branch

Core competence is the most important capability of an enterprise,which decides over the status and fate of a company. Today, with the rapidsocial and economic development and the unceasingly deepen reform infinancial system, in order to enter into the retail business with goodprospect and strong growth in Qingdao, as a foreign bank, the crucial pointfor Nanyang Commercial Bank (China) Limited Qingdao Branch is to cultivateand develop its core competence, it is urgent and important to walk outa way of distinction, localization and characteristic.Since1994, because of the control of business scope for foreign bankin our country, public business was the main profits source for this bank.Since the transformation in August,2009,the bank can manager all theRMB business, retail business has become the new profit growth point.During the two short years, retail business has developed rapidly; Thisbank has stayed ahead among the foreign banks in Qingdao.But,the bankstill has some problems in rtail business’s core competence.Based on the core competence theory, this paper discusses in detailthe retail business’s development situation and the importance ofdeveloping retail business for this bank, it analyzes the favorablefactors and competitive threats of developing retail business by SWOTmethod. According to the division theory of ring-shaped core competence,it measures and assesses the current situation of retail business’s corecompetence of the bank by six aspects: organization, personnel,capital, risk, technology and business.The conclusion of the research is that the current core competencesituation of the bank’s retail business is as blow: there are few bankbranches,so the strategic cooperation with Bank of China should bestrengthened; In order to adapt to the needs of the bank to further expandthe business, personnel knowledge structure and quality should becontinuously improved; The capital profit rate and asset profit ratio ofthe bank is very high among the foreign banks in Qingdao, but still lower than the average level of commercial banks, so the profit level shouldbe further increased; The condition of risk management is generally well,but as the open of the branches, the staff ethics risk and operationalrisk should be prevented. Besides, the business should be further improvedand enhanced, such as, retail deposit, valid customer quantity and quality,loan deposit ratio, management after loan, service level, etc.Therefore,this paper puts forward the main ways to cultivate corecompetence are: accurately orient strategy,strengthen strategicalliances; reinforce the management of recruitment,teamdevelopment,training and incentive appraisal, create elite retailcustomer managers team; wholly control risk from the sides of deposit,loan, finance, etc; Vigorously develop characteristic business, adopt away of differentiation management; Enterprise culture is the key offorging core competence which should be improved by all aspects. With theabove improvements and efforts, it is hoped that the bank can early formits own characteristic core competence in retail business, keep aninvincible position in the fierce market competition.