1.

Introduction This report covers a detailed analysis of the operations strategy of Sampath Bank PLC with the view to identify how operations strategy is exercised by the bank and to find out the contribution of operations strategy towards the success of it. The report covers sections starting from introduction and ending up with of concluding remarks. 2. Operations Management and its importance perations are the part of a business organi!ation that is responsible for producing goods and"or services. #oods are physical items and services are activities that provide some combination of time$ location$ form or psychological value. perations are what must be done internally in order to deliver to the customers whether in goods or services. Thus$ from an organi!ational perspective$ operations management may be defined as the management of the conversion process that transforms inputs such as raw material and labor into outputs in the form of finished goods and services. perations management is recogni!ed today as a critical functional area within every organi!ation. %o longer is operations management considered to be subservient to the finance and marketing areas& instead$ it is now treated as an e'ual. (irms that fail to recogni!e the significant contribution of the operations management function will lose profits and market share of the firm will also tend to decline. The once reactive role of operations management$ which concentrated solely on minimi!ing costs has been replaced by a more proactive position of maximi!ing the value added to the goods and services that the organi!ation provides. Businesses are operating in a highly competitive environment. Some of the ma)or issues facing operations management executives today in this turbulent environment include& achieving and sustaining high 'uality while controlling costs$ integrating new technologies and control systems into existing processes$ working effectively with other functions of the business *marketing$ finance$ human resources+ to accomplish the goals of the firm$ working effectively with suppliers and being user,friendly for customers. -ll of these issues are inter,related. The key to success is for operations management to do all of these at a level that is competitive in both global and domestic markets.

Page 1 of 20

3. Operations Strategy - An Overview 3.1 What is Operations Strategy? perations strategy is the development of a long,term plan for using the ma)or resources of a firm for a high degree of compatibility between the resources and the firm.s long,term business strategy. The role of operations strategy is to provide a plan for the operations function so as to make the best use of its resources. include low cost$ high 'uality$ fast delivery$ flexibility and service. 3.2 he !e"ationship #etween Operations and Strategy -ll business organi!ations are concerned with how they will survive and prosper in the future. - business strategy is often thought of as a plan or set of intentions that will set the long,term direction of the actions that are needed to ensure future organi!ational success. /owever$ no matter how grand the plan$ or how noble the intention$ an organi!ation.s strategy can only become a meaningful reality in practice if it is operationally enacted. -n organi!ation.s operations are strategically important precisely because most organi!ational activity comprises the day,to,day activities within the operations function. The relationship between an organi!ation.s strategy and its operations is a key determinant of its ability to achieve long term success or even survival. rgani!ational success is only likely to result if short term operations activities are consistent with long term strategic intentions and make a contribution to competitive advantage. The relationship between operations and the other business functions is similarly important. The ob)ective of the operations function is to produce the goods and services re'uired by customers whilst managing resources as efficiently as possible. This can lead to conflicts within an organi!ation. Conflicts between the operations and the marketing functions are likely to centre on the desire of marketing to ensure that operations concentrate on satisfying customers. 0hilst this may seem desirable$ marketing will usually want operations to be able to meet customer needs under any circumstances. This is likely to lead to demands to produce greater volumes$ more variety$ higher 'uality$ a faster response and so on$ all of which are likely to lead to less efficient operations. Conflicts between the operations and the accounting and finance perations strategies are developed from the competitive priorities of an organi!ation$ which

Page 2 of 20

functions$ on the other hand$ are likely to centre on the desire of accounting and finance to want operations to manage resources as efficiently as possible. This will tend to pull operations in exactly the opposite direction of that desired by marketing. Conflicts between operations and the human resource management function are likely to centre on issues of recruitment$ selection$ training$ management and the reward of those employed within operations. (or example$ operations managers may want to vary organi!ation wide policies in order to meet local needs& a move likely to be resisted by human resource managers. The operations function lies at the heart of any organi!ation and interacts with all the other functions. -s such$ achieving agreement about what decision areas lie within the remit of operations and what should be the basis of decision making within operations is an essential part of ensuring the consistency of action over time necessary for a successful organi!ational strategy. 3.3 Operations Strategy $rocess - company.s business strategy is developed after its managers have considered many factors and made some strategic decisions. These include developing an understanding of what business the company is in *company.s mission+$ environmental scanning$ and identifying the company.s strengths *core competencies+. These three factors are critical to the development of the company.s business strategy. 1t can be further explained with the help of following diagram.

Page 3 of 20

2ission

3nvironmental Scanning

Business Strategy

Core Competencies

Competitive Priorities rder 'ualifiers 4 winners

Strategies of other functions

perations strategy decisions. *Structure$ infrastructure+ Linked

%igure 1& he Operations Strategy $rocess -s you can see from the diagram that mission$ environment and core competencies play a crucial role in the strategy formulation of a business. The first decision a company needs to make is to identify its mission. 2ission is a statement defining what business an organi!ation is in$ who its customers are and how its core beliefs shape its business. 1dentifying the mission is a very important part of developing a business strategy. The mission basically defines the company. 1f a company doesn.t have a well defined mission it may pursue business opportunities about which it has no real knowledge or that are in conflict with its current pursuits$ or it may miss opportunities altogether. The second factor that must be considered when developing a business is the external environment in which the business is operating. This environment includes trends in the market$ economic$ political environment and in society. These trends must be analy!ed to determine business opportunities and threats. This process of monitoring the external

Page 4 of 20

environment is called environmental scanning. To remain competitive$ firms have to continuously monitor their environment and be prepared to change their business strategy in light of environmental changes. 3nvironmental scanning allows a company to identify opportunities and threats. Through environmental scanning an organi!ation can easily get to know the gaps in what customers need and what competitors are doing to meet those needs. - study of these gaps could reveal an opportunity for the company and based on which the company can design a plan to take advantage of it. The external business environment is always changing. To stay ahead of the competition$ a company must constantly look out for trends or changing patterns in the environment. Changes in the technology$ such as point,of,scale scanners$ automation$ computer,assisted processing$ electronic purchasing and electronic tracking are the clear examples for the recent trends that take place in the market place. the companies. 1n addition to market trends$ environmental scanning looks at economic$ political and social trends that can affect the business. 3conomic trends include recession$ interest rates$ inflation and general economic conditions. Suppose that a company is considering obtaining a loan in order to purchase a new facility. 3nvironmental scanning could show that interest rates are particularly favorable and that this may be a good time to go ahead with the purchase. Political trends include changes in the political climate,local$ national and international that could affect a company. There has been a change in how companies view their environment,a shift from a national to a global perspective. Companies seek customers and suppliers all over the globe. 2any have changed their strategies in order to take advantage of global opportunities$ such as forming partnerships with international firms called strategic alliances. (or example$ companies like 2otorola and 5erox want to take advantage of opportunities in China and developing strategic alliances to help them break into that market. (inally$ social trends are changes in society that can have an impact on a business. -n example is the awareness of the dangers of smoking$ which has made smoking less socially acceptable. This trend has had a huge impact on companies in the tobacco
Page 5 of 20

ne rapidly growing

trend is e,commerce. -ll these factors changed the way the services being provided by

industry. 1n order to survive$ many of these companies have changed their strategy to focus on customers overseas where smoking is still socially acceptable or have diversified into other product lines. The third factor that helps define a business strategy is an understanding of the company.s strengths known as core competencies. 1n order to formulate a long term plan$ the company.s managers must know the competencies of their organi!ation. Core competencies could include special skills of workers$ such as expertise in providing customi!ed services or knowledge of information technology. -nother example might be flexible facilities that can handle the production of a wide array of products. To be successful$ a company must compete in markets where its core competencies will help it win. /ighly successful companies develop a nosiness strategy that takes advantage of their core competencies or strengths. -ll these factors namely vision$ environmental scanning and core competencies help the formulation of the business strategy. The following diagram shows the snapshot view of the contribution of these three factors towards the creation of business strategy. )nvironmenta" Scanning *2onitoring the business environment for market trends$ threats and opportunities+ Mission *Statement that defines what is the business& who are the clients and how values define business+ *ore competencies *6ni'ue strengths that can help a firm to win the market+

Business Strategy %igure 2& hree inputs towards the deve"opment o' a (usiness Strategy

Page 6 of 20

-s you can see from the figure 7$ which shows a dynamic$ ongoing process that is constantly allowed to change. -s environmental scanning reveals changes in the external environment the company may need to change its business strategy to remain competitive while taking advantage of its core competencies and staying within its mission. nce a business strategy has been developed$ an operations strategy must be formulated. This will provide a plan for design and management of the operations function in ways that support the business strategy. The operations strategy relates the business strategy to the operations function. 1t focuses on specific capabilities of the operation that give the company a competitive edge. These capabilities are called competitive priorities. Competitive priorities are capabilities that the operations function can develop in order to give a company a competitive advantage in its market. By excelling in one of these capabilities a company can become a winner in its market. Skinner and others initially identified four basic competitive priorities. These were cost$ 'uality$ delivery and flexibility. These four priorities translate directly into characteristics that are used to describe various processes by which a company can add value to the products and services it provides. There now exists a fifth competitive priority known as service and it was the primary way in which companies began to differentiate themselves. To help decide which competitive priorities to focus on a firm should be able to distinguish between order winners and order 'ualifiers. rder 'ualifiers are competitive priorities that must be met for a company to 'ualify as a competitor in the market place. rder winners on the other hand are the competitive priorities that help a firm to win orders in the market. 8nowing the order winners and order 'ualifiers in a particular market is critical to focusing on the right competitive priorities. -s soon as the competitive priorities have been identified$ a plan is developed to support these priorities. The operations strategy will specify the design and use of the organi!ation.s resources& that is$ it will set forth specific operations re'uirements. These can be broken down into two categories namely structure and infrastructure. perations decision related to the design of the production process such as characteristics of facilities used$ selection of appropriate technology and the flow of goods and services
Page 7 of 20

through the facility are coming under the category of the structure. perations decisions related to the planning and control systems of the operations such as the organi!ation of the operations function$ the skills and pay of workers and 'uality control approaches are coming under the category infrastructure. Together the structure and infrastructure of the production process determine the nature of a company.s operations function. The structure and infrastructure of the production process must be aligned to enable the company to pursue its long term plan. This what the way an operations strategy is developed. - sound business strategy coupled with of supporting operations strategy will make an organi!ation more competitive in the market place. +. rends a''ecting Operations Strategy decisions perations management is continuously changing to meet the new and exciting challenges of today.s business world. Two ma)or trends that have significantly impacted the role of operations strategy within an organi!ation are an increasing trend towards globali!ation of business and advances in technology especially information technology. +.1 ,"o#a"i-ation The world is 'uickly becoming a global village$ caused in large part by technology. -s a result$ competition in most industries has intensified significantly in recent years and this trend towards hyper competition is expected to continue. Because of globali!ation markets once dominated by local or national companies are now vulnerable to competition from literally all corners of the world. -t the same time globali!ation provides new opportunities for companies in the form of new previously untapped markets for their products as well as new sources for raw material and components at significantly lower costs. -s a result of globali!ation of business$ managers must extend their vision beyond their own national boarders while developing operations strategies. 0hen companies expand their business beyond the territorial boundaries the operations management function take a broader$ more global perspective for companies to remain competitive. To survive and prosper in such a global market place companies must excel in more than one competitive dimensions.
Page 8 of 20

+.2 Advances in echno"ogy -dvances in technology in recent years have had a significant impact on the operations management function. The increased use of information technology$ automation and robotics has permitted firms to improve the 'uality of the goods that are being provided. -ccording to Stan 9avis and Chris 2eyer three factors that are significantly affecting the way the business is being conducted namely connectivity$ speed and intangibility. They suggest that the combination of all three is causing changes to occur in the business. -ll three factors are directly related to advances in technology. Connectivity refers to the fact that virtually everyone is now connected electronically$ be it through e,mail$ internet$ telephone or fax. -t the same time firms with these connected networks in many cases provide services that are now available twenty four hours. -s a result of this connectivity information is transmitted in a matter of seconds or minutes$ instead of hours or days which was the previous norm. The combination of connectivity and speed suggests that firms are now focusing on the intangible aspects of their business to gain competitive advantage in the market place which translates into providing better and more innovative services. Technology has also dramatically affected one of the basic concepts in operations strategy that of making trade,offs between priorities. 0ith advances in technology managers no longer have to make pure trade,offs between competitive priorities as they once did. 1nstead$ today.s technology allows firms to compete on several priorities simultaneously resulting in shifts to superior performance curves. .. *ompetitive /imensions as a Source 'or *ompetitive Advantage The key to developing an effective operations strategy lies in understanding how to create or add value for customers. Specifically$ value is added through the competitive priority or priorities that are selected to support a given strategy. Skinner and others initially identified four basic competitive priorities namely cost$ 'uality$ delivery and flexibility. These four priorities translate directly into characteristics that are used to describe various processes by which a company can add value to the products it provides.

Page 9 of 20

..1 *ost Competing based on cost means offering a product at a low price relative to the prices of competing products. 0ithin every industry$ there is usually a segment of the market that buys strictly on the basis of low cost. To successfully compete in this niche$ a firm must necessarily be the low cost producer. Products sold strictly on the basis of cost are typically commodity,like. 1n other words$ customers cannot easily distinguish the products made by one firm from those of another. -s a result customers use cost as the primary determinant in making a purchase. To develop this competitive priority the operations function must focus primarily on cutting costs in the system$ such as costs of labor$ materials and facilities. Companies that compete based on cost must study their operations system carefully to eliminate all waste. They should offer extra training to employees to maximi!e their productivity and minimi!e scrap. #enerally$ companies that compete based on cost offer a narrow range of products and product features allow for little customi!ation and have an operations process that is designed to be as efficient as possible. ..2 0ua"ity 2any companies claim that 'uality is their top priority and many customers say that they look for 'uality in the products they buy. :et 'uality has a sub)ective meaning& it depends on who is defining it. 0hen companies focus on 'uality as a competitive priority they are focusing on the dimensions of 'uality that are considered important by their customers. ;uality as a competitive priority has two dimensions. The first is high performance design. This means that the operations function will be designed to focus on aspects of 'uality such as superior features$ close tolerances$ high durability and excellent customer service. The second dimension is product and service consistency$ which measures how often the product or service meets the exact design specifications. - company that competes on this dimension needs to implement 'uality in every area of the organi!ation. ne of the first aspects that needs to be addressed is product design 'uality$ which involves making sure the product meets the re'uirements of the customer. The second aspect is process 'uality$ which deals with designing a process to produce error free products. This includes focusing on e'uipment$ workers$ materials and every other aspect of the operation to make sure it works the way it is supposed to.
Page 10 of 20

Companies that compete based on 'uality have to address both of these issues& the product must be designed to meet customer needs and the process must produce the product exactly as it is designed. 0hen it comes to a bank$ service 'uality plays a crucial role in its success. ne way to

improve 'uality is to improve communication with the bank.s customers. Communication includes all customer contact from monthly statements to personal contact at the branch. 3ach contact is vital because banking is an intangible service$ which cannot be readily assessed by potential customers before the service is delivered. 0hen it comes to operations$ 'uality is a key component from a banker.s perspective and is one of the key ob)ectives of operations. ;uality can be improved by decreasing the variations in the services being delivered by the banks. Therefore attention should be given towards customers. interaction with the bank. The operations manager is right in the middle of the 'uality discussion. /e is having the sole responsibility to make sure that the bank.s system of delivery is satisfactory both from the customer stand point and internally. Bankers along with operations officers should also consider the internal service 'uality. (or bankers this means having timely and accurate information. 1n order to sell the product or additional products to customers bankers must have reliable information. The banks that cannot access timely information will not survive. Courteous and consistent service$ enlarge customer relationships$ accurate and timely information$ efficient bank office processing$ highly personali!ed service$ high value and convenient service these might be the aspects of 'uality of banks based on which banks can differentiate their services being delivered to customers as far as the 'uality is concerned. ..3 /e"ivery Speed of delivery is an important determinant in the purchasing decision of customers. /ere$ the ability of a firm to provide consistent and fast delivery allows it to charge a premium price for its products. 1n addition to speed of delivery$ the reliability of the delivery is also important. 1n other words$ products should be delivered to customers with minimum variance in delivery times. Today.s customers do not want to wait and companies that can meet their need for fast service are becoming leaders in their industries.
Page 11 of 20

0hen it comes to delivery it can be divided into two categories namely rapid delivery and on,time delivery. <apid delivery refers to how 'uickly an order is received and on, time delivery refers to the number of times deliveries are made on time. 0hen delivery is a competitive priority$ the )ob of the operations function is to critically analy!e the system and combine or eliminate processes in order to reduce time so as to speed up delivery. ften companies use technology to speed up processes rely on a flexible workforce to meet peak demand periods and eliminate un,necessary steps in the production process. -s far as the banking service is concerned$ banks should concentrate on reducing the waiting time of customers. The shorter the time customers waiting in the line the higher the satisfaction will be and vice versa. ..+ %"e1i#i"ity (lexibility is a competitive priority focusing on offering a wide variety of products or services. There are two dimensions of flexibility. ne is the ability to offer a wide variety of products or services and customi!e them to the uni'ue needs of clients. This is called product flexibility. - flexible system can 'uickly add new products that may be important to customers or easily drop a product that is not doing well. -nother aspect of flexibility is the ability to rapidly increase or decrease the amount produced in order to accommodate changes in the demand. This is called volume flexibility. Companies that compete based on flexibility often cannot compete based on speed$ because it generally re'uires more time to produce a customi!ed product. -lso$ flexible companies typically do not compete based on cost$ because it may take more resources to customi!e the product. /owever$ flexible companies often offer greater customer service and can meet uni'ue customer re'uirements. To carry out this strategy$ flexible companies tend to have more general purpose e'uipment that can be used to make many different kinds of products. -lso$ workers in flexible companies tend to have higher skill levels and can often perform many different tasks in order to meet customer needs.

Page 12 of 20

2. A #rie' Overview o' Sampath (an3 $4* Sampath Bank commenced business early =>?@ as the 1nvestment and Credit Bank. 1n September =>?@$ the name was changed to Sampath Bank Limited. The bank has had a broad based shareholding from the time its shares were 'uoted on the local stock exchange,at that time. 1n fact$ it had the largest number of shareholders *over =?$AAA+ for a public 'uoted company in Sri Lanka. The bank was an immediate success& and it revolutioni!ed the banking industry in Sri Lanka by introducing customer,centric products and services$ and drastically reducing transaction times. Blending modern technology with a strong sense of national consciousness was the secret of its success. Balue addition has been its main strength. 1t invests in technology and employs dynamic and self,motivated professionals to enhance its service capabilities. 1nnovation$ team work and high ethical standards have contributed to the success of Sampath Bank. 1n a relatively short time span the bank has produced many firsts. 1t was the first local bank in Sri Lanka to be fully computeri!ed and the first to issue 2aster Cards. 1t was also the pioneer in networked -utomated Teller 2achines *-T2s+ and the first bank in Sri Lanka to introduce telephone banking. Sampath Bank PLC has also been a trailbla!er in 1nformation Technology *1T+ and Transmission Control Protocol *TCP+ in communications. <egularly ac'uiring cutting edge technology$ it locali!es this aspect to make it more adaptable and suitable to meet the needs of customers. 1ndeed$ it is the first bank to bring virtual banking to the door step of even remote rural areas in the country. The bank has also introduced internet and mobile banking$ and it is a principal member of 2aster Card and Bisa. - staff strength more than =>AA and a network more than =AA branches in Sri Lanka is testimony to the bank.s impressive growth over the years. 2.1 5ision and 5a"ues o' Sampath (an3 Bision is an aspirational description of what an organi!ation would like to achieve or accomplish in the mid,term or long,term future. 1t is intended to serve as a clear guide for choosing current and future courses of action. The vision of Sampath Bank is CThe #rowing (orce in Sri Lankan (inancial ServicesD. The vision of Sampath Bank has a more clarity in business perspective than the focus. Therefore the vision of Sampath Bank can be placed as the 2ission where the organi!ation doesn.t have any mission
Page 13 of 20

statement in the current context. This will enable the organi!ation to have more clarity in business perspective whilst clearly defining the overall ob)ectives of the organi!ation. Balues are a company.s ethical and moral compass and decision making foundation. They are the ideals and ethics that management holds valued. They drive decision making in that they are constantly referred to in the decision making process. They tell those in the company how things are done and those outside the company why they want to be associated with this company. Sampath Bank has six values namely& create a learning culture that promotes individual and organi!ational development as well as promoting innovation and value for customers$ treat all internal and external customers the way we would like to be treated$ encourage and promote team work in all aspects of behavior$ open to feedback and demonstrate an impressive commitment to results and uncompromising ethical and professional standards of behavior. 6. *ore areas o' Operation o' Sampath (an3 Sampath Bank is the third largest private sector commercial bank in the country$ in terms of total assets$ focusing on delivering futuristic financial services to individuals$ corporates and other institutions. The core areas of business are organi!ed in to Personal Banking$ Corporate Banking$ Treasury Banking. 6.1 $ersona" (an3ing 1t caters to wide range of customers facilitating management of personal finances through a range of products that address their investment with transactional and financing needs. 6.2 *orporate (an3ing 1t delivers financial solutions tailored to meet corporate investment and operational needs through the bank.s sub divisions& Corporate Credit$ 9evelopment Banking$ Trade Services$ Corporate (inance and the (oreign Currency Banking 6nit. 6.2.1 *orporate *redit 1t provides credit facilities across a spectrum of products tailored to the corporate sector. perations$ Credit and 9ebit Cards and 3,

Page 14 of 20

6.2.2 /eve"opment (an3ing 1t focuses on financing the business commencing operations utili!ing credit lines available to the banking industry$ concessionary funds from their own funding base and an allocation from the 1nvestment (und -ccount. 6.2.3 rade Services 1t provides documentary credit and related facilities to importers and exporters harnessing technology effectively to provide a fast and reliable service. 6.2.+ *orporate %inance 1t provides 2erchant Banking and Professional Corporate Services$ advisory and other corporate services. 6.2.. %oreign *urrency (an3ing 7nit 1t has been formed with a view to provide solutions and expertise for corporate clients. foreign currency financing needs. 6.3 reasury Operations 1t carries out interbank operations to manage the bank.s exposure to exchange rate risk$ interest rate risk and li'uidity risk arising from normal banking activities. 6.+ *redit and /e#it *ards 1t offers a range of cards to suit the diverse life style needs of Sri Lankans with unmatched promotions and the highest security for all transactions. 6.. )-(an3ing 1t develops and maintains a range of products facilitating electronic transactions for the convenience of the bank.s customers. These range from 2obile Cash to the Sri Lanka e,gateway for tourist visas to Sri Lanka.

Page 15 of 20

8. Operations Strategy Mode" o' Sampath (an3

*ore areas o' Operation Sta3eho"ders Senior Citi!ens Children Teenagers $ersona" (an3ing Professionals $roducts Sampath Sanhinda Savings 4 (9.s EPubudu. 4 ESapiri. 2inor Savings E5 Set. Savings ESupreme. Current -ccounts$ Local 4 (oreign Currency Savings$ (9.s$ /ousing 4 other loans ESevana 9ayada. /ousing Loans 0orking Capital (inancing$ 1mport 4 3xport (inancing$ Leasing$ #uarantees$ Corporate Payment System Pro)ect (inancing S23 Loans 2icro (inancing LC.s Bills Collections 1mport (inancing$ Shipping #uarantees Behicle 1mport (acilities Treasury Bills$ Bonds$ <epos 4 <everse <epos Professional Service using cutting edge technology 6nderstanding Customer needs and delivering best solution -chieve 1ndustry Leadership /e"ivery *hanne"s A M 9etwor3 Internet (an3ing (ranch 9etwor3 Mo#i"e (an3ing Strategy

#rowth through innovative product design and outreach

(amilies

*orporate (an3ing

Corporates

rganic #rowth through superior Service

/eve"opment (an3ing

Corporates S23.s Small 3ntrepreneurs Corporates S23.s 1ndividuals Corporates S23.s 1ndividuals Professionals 3mployed Persons Self,3mployed

Selective #rowth

rade Services reasury Operations *redit : /e#it *ard Operations

2aster 4 Bisa Credit Cards -ffinity Cards Sa'eguard Asset 0ua"ity Maintain Sta#i"ity

Improve !is3 Management; *omp"iance : *orporate ,overnance Sustaina#"e ,rowth in returns

)mp"oyees

Shareho"ders

*ustomers

Supp"ies : Service $roviders

,overnment : !egu"ators

%igure 3& Operations Strategy Mode" o' Sampath (an3 $4* (Source: Adapted from Sampath Bank Annual Report 2012)

Page 16 of 20

-s you can see from the figure F that it provides a detailed view of the framework of operations strategy adopted by the Sampath Bank PLC. The figure consists of four main pillars starting from core areas of operation$ stakeholders$ products$ delivery channels and at last strategy. 3ach core areas of operations of the bank is segmented towards various stakeholders connected with the business and the bank provides specific products and services tailored to fit the re'uirements of the stakeholders of their business. The service of the bank is being delivered via four delivery channels namely Branch %etwork$ -T2 %etwork$ 1nternet Banking and 2obile Banking. 3ach area of operations uses different kind of strategy. -s you can see from the figure that the bank is having diversified products to meet the re'uirements of its clients. This is an indication of product flexibility being applied by the Sampath Bank. (urthermore$ the figure depicts the core strategy of the bank defining areas of growth within the risk appetite of the bank linked to support services and delivery channels necessary to support the defined growth. -mbitious organic growth through inclusive banking$ consolidate branch operations$ improve profitability through responsive pricing and cost management$ safe guard asset 'uality$ technology driven banking$ focus on key customer groups$ business growth through innovative products and pioneering services these are the strategies used by the bank which lead them towards sustainable growth in returns. 0hen it comes to banking now a days technologies are being employed by various banks to streamline their operations and creating sustainable competitive advantage. That is technology driven banking plays a crucial role towards the success of banks. Sampath Bank is the first one introduced the -T2 in the banking history of Sri Lanka and is known as the pioneer in applying technologies for the betterment of services being provided by the banks. The best way to measure growth is to check on how it has benefited stakeholders as it is clearly evident by the strategic model being applied by the bank. 0hile being focused on corporate development and product innovation$ the bank has contributed to uplift the living standards of its stakeholders.

Page 17 of 20

-s you can see from the figure that the bank.s operations strategy model is very detailed across the operational areas and flexible in reacting to environmental changes. (or a strategy to be effective it must not only be well,fitted to its competitive environment but it also must be communicated and widely understood throughout the organi!ation. -s far as 1 know the strategic model being applied by the Sampath Bank is organic *adaptive to changes in the environment+ and well suited to the turbulent business environment. <. *onc"uding !emar3s The banking sector is a key player in the country.s financial system accounting for G>.@H of the total financial sector.s assets. There are FF banks in operation as of 7A=7 comprising =7 domestic licensed commercial banks$ =7 foreign commercial banks and > licensed speciali!ed banks. The information revolution in computers and tele communications technology has had and will continue to have a ma)or impact on the financial services industry of Sri Lanka. Banks in Sri Lanka have to vie with host of competitors not only with other banks but also with investment companies$ finance companies$ insurance companies and brokerage companies. Therefore$ success depends on how they differentiate their services and how adaptive they are to the changes in the turbulent business environment. Thus$ strategy plays a crucial role when it comes to the success of them. The strategic model or framework of the banks should be organic and should align with the overall corporate strategy of them. 1f a bank fails to adapt a model to the changes in the environment will definitely result in entropy. 0hat 1 came to know was the business strategy of Sampath Bank was to take advantage of an opportunity in the market. The combination of globali!ation of business coupled with advances in technology has created a hyper,competitive environment in which managers must constantly be looking for new and innovative strategies to stay ahead of competition. The operations strategy model of the Sampth Bank PLC was detailed and the strategies used in the each operational areas were very good when it comes to facing the challenges in the modern business era.

Page 18 of 20

Banks that ignore the important role of operations management within an organi!ation pay a priceI failure. (rom an operations management perspective banks should focus on continuously providing high 'uality service to the customers with shorter waiting times and better customer service while simultaneously reducing staff and material costs and increasing the utili!ation of existing facilities. -ll of which translates into higher profitability and lead the banks towards sustaining their business for long.

Page 19 of 20

!e'erences =. <etrieved from JhttpI""highered.mcgraw,hill.com"sites"dl"free"AA@A>77?F@"=K?KFF" sampleLch7.pdf. 7. <etrieved from JhttpI""www.wiley.com"college"reid"AM@=F7A==A"pdf"iLchA7.pdfN. F. <etrieved from JhttpI""www.tompkinsinc.com"wp,content"uploads"7A=M"A="aligning, exec,strat.pdfN. M. <etrieved from JhttpsI""www.sampath.lk"ar7A=7.pdfN. K. 3verett 3. -dam$ Or. 4 <onald O. 3bert 7A=7$ Production and 2anagement$ Kth 3dition$ P/1 Learning Private Limited$ %ew 9elhi$ 1ndia. perations

Page 20 of 20