- •Vocabulary Commentary
- •All yours Manufacturing companies are increasingly using the Internet to give customers the impression of personal service. But true customisation needs new production techniques as well
- •Vocabulary
- •Can Bayer Cure Its Own Headache? Shareholders would like it to shed everything but health care
- •Vocabulary
- •«Байер» перестраивается
- •Nokia's next act Can the Finnish giant stay on top in an age of commodity phones and stalling sales?
- •Vocabulary
- •Canon Cutting Edge By trimming down to four product lines, it's making record profits
- •Halfway down a long road Carlos Ghosn's efforts to meld Nissan with Renault have become the stuff of management legend. But the alliance faces some daunting challenges
- •Can Ford Fix This Flat?
- •Vocabulary
- •Vocabulary
- •A Challenge From the Nimble Newcomers
- •Mergers & Acquisitions Will the latest cycle of European mergers produce better results?
- •Vocabulary
- •Vocabulary Commentary
- •Independent directors at big public companies need to be tougher
- •Vocabulary
- •Vocabulary
- •U r Sakd
- •Is there a nice way?
- •Simon London finds the post of chief operating officer falling prey to a new breed of executive with greater powers and access to the boss
- •The Bottom Line on Options
- •Unit 13 Consolidation
- •Will ceOs Find Their Inner Choirboy?
- •Пролетая над Таити
- •Vocabulary
- •Useful Words and Phrases
- •«Нортел»
- •The Numbers Game Companies use every trick to pump earnings and fool investors. The latest abuse: "Pro forma" reporting"
- •Vocabulary
- •Unit 15
- •I swear… Oaths are only a small step in the business of cleaning up American companies
- •Something must be done
- •Vocabulary
- •Holier Than Thou European sanctimony over American accounting scandals is misplaced
- •Et, the extra-territorial
- •Vocabulary
- •Revenge of the Bean Counters No longer frail in the face of fraud, accounting firms are thriving on new u.S. Laws that give them real clout
- •Half Measures
- •Bad for cfOs, Good for Investors
- •Хранители прозрачности или слуга двух господ
- •Unit 16
- •Up from the ashes Amid a global wave of business failures, American firms are more likely to get a second chance. Unfair competition, or a lesson for Europeans?
- •Eurotunnel vision
- •Vocabulary
- •Var crash
- •Vocabulary
- •Европа уходит за рубеж
- •Goldman's German revolution
- •Have Fat Cats Had Their Day?
- •Unit 18
- •Stronger foundations New proposals for regulating banks are both a step in the right direction and evidence of how hard it is to monitor the riskiness of the banking system
- •Vocabulary
- •Vocabulary
- •Английский характер
- •Unit 19
- •Conflicts, conflicts everywhere Was America wrong to scrap the laws that kept commercial and investment banking apart?
- •Vocabulary
- •Care To Buy Some David Bowie Bonds
- •In Europe, securitization is the hottest way to raise cash
- •Beautifying Branches
- •Instead of axing their branches, banks are inventing new ways to make money out of them
- •Slippery
- •Coffee, Tea, or Mortgage?
- •Life Branches?
- •The world's biggest retailer edges into financial services
- •Гросс-банки сокращаются
- •Feeding Frenzy
- •Tough Questions for aig's Auditors Regulators are probing if PwC let the financial shenanigans slip through
- •Watchdogs with Eyes Wide Shut As investigators pore over the books of aig, it's becoming clear that for years regulators failed to detect lapses
- •Goldman's German Revolution
- •Another Year, Another Scandal
- •Digging out at Allianz The German financial-services giant is back in the black — but still struggling
- •A Dedicated Enemy of Fashion Most companies claim to run their business for the long term. Nestle is one of the few that really does
- •More Pain, Waiting for the Gains Drastic action as gm's cash pile runs down
- •«Морган Стэнли» увольняет сотрудников, чтобы оставшиеся лучше работали
Slippery
Most banks, however, fear the loss of control that franchising can entail. The main risk is to a bank's brand. The people who run the franchised branches might, for instance, ramp up short-term profits simply by cutting comers and reducing service. Colonial State Bank in Australia, another bank that decided to franchise its branches, found that while sales leapt, so too did complaints, some of its 87 franchisees were removed. So far, Abbey National's franchisees have made only small changes. They have got rid of the "Customer Services" badges that the branch workers used to wear. Instead, staff wear their own names. In the centralised system, Abbey's head office simply issued orders to branches, which mean that local knowledge went unheeded. "The boffins in marketing would use us for experiments," says Alf Langley, a franchise manager in north London. "We felt like depositories for posters." Now the branches are less deferential. Alan Thomas, a franchisee in Wales, sent back a load of posters and leaflets which advertised loans for houses valued at over £200,000. In Merthyr Tydfil, he pointed out, no houses cost that much. Instead, Mr. Thomas created his own marketing material, in Welsh.
If people are turned off by bank branches, another line of thinking goes, then put something else in them that they actually enjoy In Japan, Suruga Bank has invited Starbucks coffee shops on to its premises, a trick also used by Wells Fargo in America and Abbey National (with Costa Coffee) in Britain. The Bank of Yokohama offers McDonald's hamburgers alongside its cash machines. The banks get rent for letting out their branch space, but their fonder hope is that people who come in for an espresso will fancy something in the financial line. But it takes a leap, it scarcely needs saying, to go from ordering a coffee to buying a mortgage.
Perhaps the most radical answer to the question of what to do with branches is a plan by two British mutual societies to share their premises for day-to-day transactions. Between them, the Yorkshire Building Society and Britannia have 322 branches in Britain. By sharing, they will both in effect double the size of their network at no extra cost. Eventually, the Yorkshire Building Society hopes, Britain's remaining mutual societies (all 65 of them) will join the network. If that happens, the group could close overlapping branches and save money without annoying customers, because there would still be a shared branch for them to use. Conventional banks could do the same thing, of course, but they are still too suspicious that their customers might defect to the bank on the far side of the room.
The Economist
• Text 4
Coffee, Tea, or Mortgage?
BARCLAYS BANK PLC WAS long the dominant credit card player in the British market, until American rivals showed up a few years ago with cutthroat pricing and direct-mail sales tactics.
Barclays had been getting more than 80% of its new customers the old-fashioned way — from application forms stacked in piles at its local branches.
It needed to raise its game, but how? The storied lender fired up its data base of 10 million bank account customers, augmented it with demographic and behavioral data and credit bureau information, and came up with a list of customers who were inclined to sign up for more services. Then it started selling them stuff.
The strategy worked. "The future will be driven by customers who are signaling [what they want] through the Internet and other areas," says Keith Coulter, managing director at Barclays U.K.
Ah, the Internet. That's where savvy shoppers call up the latest and best rates on any number of financial products and services and sign up for them in a matter of minutes.
Add to that the emergence of peer-to-peer banking which cut out banks enti rely — and the possibility of Wal-Mart Stores Inc. entering the business, and you have the perfect conditions for what industry people call chum, and what the rest of us call defections.
That's why banks are in full-scale makeover mode, adopting sales strategies perfected by retailers.
The most forward-thinking banks are enlisting architects to redesign their sleepy storefronts, behaviorists to profile customers, and high-tech consultants to rev up their 21st century marketing machines with high-tech gadgetry and systems.
Business Week
• Text 5