On Marketing Management

Project On Marketing Management Subject: Standard Chartered Bank

Index Contents…………………………Page No History………………………………………..2 Principles & Values…………………………....3 SCB Stands For…………… …............................4

Board of Directors………… …............................5 Global Team……………… …............................6 Swot Analysis………………………………..7 Social Analysis……………………………....10 Economical Analysis……………………….... 10 Technical Analysis……………………….......11 Business Overview……… ….............................12 4 P’s…………………………………….....12 Recommendation………………………........ 16 Conclusion……………………………........19

2

History: The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India, Australia and China, founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

The Chartered Bank • • •

•

•

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama. Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.

The Standard Bank • •

• •

Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863. Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices. In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their

3

commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise. In the new millennium we acquired Grind lays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000. Since 2005, we have achieved several milestones with a number of strategic alliances and acquisitions that will extend our customer or geographic reach and broaden our product range.

Alliances and Acquisitions Strategic alliances and acquisitions to support our organic growth and strengthen our position in the global markets.

Principles & Values At Standard Chartered our success is built on teamwork, partnership and the diversity of our people. At the heart of our values lie diversity and inclusion. They are a fundamental part of our culture, and constitute a long-term priority in our aim to become the world's best international bank. Today we employ 75,000 people, representing 115 nationalities, and you'll find 60 nationalities among our 500 most senior leaders. We believe this diversity helps to fuel creativity and innovation, supporting the development of exciting new products and services for our customers worldwide.

4

What Standard Chartered Stands for Strategic intent • •

The world's best international bank Leading the way in Asia, Africa and the Middle East

Brand promise •

Leading by Example to be The Right Partner

Values • • • • •

Responsive Trustworthy International Creative Courageous

Approach •

Participation Focusing on attractive, growing markets where we can leverage our relationships and expertise

•

Competitive positioning Combining global capability, deep local knowledge and creativity to outperform our competitors

•

Management Discipline Continuously improving the way we work, balancing the pursuit of growth with firm control of costs and risks

5

Commitment to stakeholders •

Customers Passionate about our customers' success, delighting them with the quality of our service

•

Our People Helping our people to grow, enabling individuals to make a difference and teams to win

•

Communities Trusted and caring, dedicated to making a difference

•

Investors A distinctive investment delivering outstanding performance and superior returns

•

Regulators

Its people, its values They are one of the world's most international banks in terms of the diversity of our people. Our 75,000 employees, representing 115 nationalities, are exposed to exciting career opportunities as a result of our unique global footprint.

Board of Directors: Standard Chartered leaders reflect the diversity that drives Standard Chartered success and makes it one of the world's most international banks.  Mervin Davies CBE Chairman  John Peace Non-Executive Director and Deputy Chairman  Jamie Dundas Non-Executive Director

6

 Val Gooding Non-Executive Director  Rudy Markham Non-Executive Director  Ruth Markland Non-Executive Director  Sunil Mittal Non-Executive Director  John Paynter Non-Executive Director  Paul Skinner Non-Executive Director  Oliver Stocken Non-Executive Director

Global Team The Bank offers a well-rounded career that is truly global in scope. Our size and reach facilitate exposure to international banking standards and work experience by providing employees with opportunities to travel, interact and learn from other cultures. Each year as many as 20 per cent of our employees get expanded role opportunities. Over 2,000 of our employees are on cross-border assignments at any one time. Nearly half of our employees are women, and almost 60 nationalities are represented among the senior management, reflecting the bank's policy towards providing equal opportunity for all employees.

7

SWOT ANALYSIS: Strengths Standard Chartered has a network of over 1,750 branches and outlets in more than 70 countries and territories across the globe, making us one of the world's most international banks.

Asia Pacific • • • • • • •

Afghanistan Australia Bangladesh Brunei Darussalem Cambodia China Hong Kong

• • • • • • • •

India Indonesia Japan Laos Macau Malaysia Mauritius Nepal

• • • • • • • •

Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam

Africa •

Botswana

8

•

Cameroon

• • • •

Cote d'lvoire Ghana Kenya Nigeria

• • • • • • •

Sierra Leone South Africa Tanzania The Gambia Uganda Zambia Zimbabwe

The Middle East • • • • • • •

Bahrain Egypt Jordan Lebanon Oman Qatar UAE

UK/Europe • • • • • •

Austria France Germany Guernsey Italy Jersey

• • • • • •

Kazakhstan Luxembourg Monaco Poland Romania Russia

9

• •

Spain Sweden

• • • •

Switzerland Turkey Ukraine United Kingdom

The Americas • • • • •

Argentina Bahamas Brazil Canada Cayman Islands

• • • • •

Chile Colombia Falkland Islands Mexico Peru

• • •

Uruguay USA Venezuela

Weakness: The latest deal by Standard Chartered, the British bank with a big Asian presence, may seem odd: It is paying a premium of more than 30 percent for Hsinchu of Taiwan, a bank saddled with bad credit card loans that has lost money so far this year. But Standard Chartered has rarely followed a predictable course. And for years, it has defied critics’ warnings that it was overpaying for deals, as well as market predictions that it would be gobbled up by a big global bank. With most of its operations in fast-growing economies from Pakistan to Singapore to the United Arab Emirates, and its largest concentration of customers and profits in Hong Kong, Standard Chartered is now in a position that makes it the envy of many of its investment and commercial banking peers in Europe and the United States.

10

Opportunities: Responsible and sustainable lending to be a force for good: With a significant presence in Asia, Africa and the Middle East, Standard Chartered plays an important role in economic growth. Aware that there can be conflict between economic growth and communities as well as challenges in protecting the environment, we will be a force for good, encouraging sustainable development wherever we operate or have influence.

Threat: Risk ratings, macroeconomic forecasts, and financial markets analysis on the world's emerging markets

Social Analysis: At Standard Chartered, we're inspired by people who are passionate about what they believe in - and who have the courage to overcome obstacles to achieve their goals. By sponsoring these individuals, we are able to share their vision and stories with our customers and staff. Blind athlete, Henry Wanyoike, and his running partner, Joseph Kibunja, take part in all of our marathons, speaking to thousands of people about the importance of having the courage and the right partner to pursue their dreams. They have also helped raised awareness and millions of dollars for our global community programme seeing is Believing. Young cricketers, Alistair Cook and Stuart Broad have worked extremely hard to earn a place in the England team. They continue to aim high, sharing their passion with our staff, our customers and young people.

Economical Analysis: Committed to the long-term development of the communities in which we operate Standard Chartered sponsors a wide range of inspirational people, projects and events.

11

Helping protect against financial crime Upgraded anti-money laundering monitoring systems in the UK and US Improved sanctions screening systems operational in major payment centers As a bank, Standard Chartered is in a unique position to contribute to the fight against financial crime. It is vital that we keep pace with new threats as they emerge. And we must have the best processes in place to protect us and our customers and to minimize the impact of financial crime on the communities we serve. In 2006, global money laundering was estimated at over USD500 billion. In the political arena, this criminal activity is increasingly linked to international terrorism and, as a result, is subject to more stringent sanctions and regulations. At Standard Chartered, we go beyond the minimum legal requirements, setting standards that lead by example. Tackling financial crime is an area where we can have a significant influence on our industry. The procedures we adopt will improve our understanding of our customers and help protect their business as well as helping us build a sustainable business for the Bank and the communities we operate in.

Technical Analysis: Standard Chartered performance is well balanced between the twin engines of Consumer and Wholesale Banking. Both businesses continue to innovate and diversify to meet the changing needs of customers in some of the world's most exciting and dynamic markets.

Youth sports: Standard Chartered sponsors youth rugby programmes in partnership with the Rugby Unions in Singapore and Hong Kong. The aim of the programmes is to extend participation to lower income classes, giving more than 7,000 young people in 130 local schools the opportunity to develop their skills and create new options for their future. We also sponsor the International Cricket Sixes in Hong Kong, helping to promote the sport through this annual international event.

12

Business Overview: Standard Chartered performance is well balanced between the twin engines of Consumer and Wholesale Banking. Both businesses continue to innovate and diversify to meet the changing needs of customers in some of the world's most exciting and dynamic markets. In response to a rapidly changing world, the diverse needs of our stakeholders and global challenges such as climate change and poverty, we have developed a strategy to build a sustainable business. This will enable us to recruit and retain the best staff, build strong stakeholder relationships, take advantage of new commercial opportunities and manage new types of risk. Because we operate in more than 70 countries in Asia, Africa and the Middle East, our influence is widespread and it is essential that we take a long-term view of the consequences of our actions. We know we can make the greatest difference by using our core skills, talent, products and services. Working closely with stakeholders such as governments, customers, employees and suppliers, we have defined seven pillars of building a sustainable business. These are key areas where we can make the greatest contribution.

4 P’s Product Business & Strategy Our business Listed on both the London Stock Exchange and the Hong Kong Stock Exchange, Standard Chartered PLC is consistently ranked in the top 25 FTSE 100 companies by market capitalization. By combining our global capabilities with deep local knowledge, we develop innovative products and services to meet the diverse and ever-changing needs of individual, corporate and institutional customers in some of the world's most exciting and dynamic markets.

13

Personal Banking Through our global network of over 1,750 branches and outlets, we offer personal financial solutions to meet the needs of more than 14 million customers across Asia, Africa and the Middle East.

SME Banking Our SME Banking division offers a wide range of products and services to help small and medium-sized enterprises manage the demands of a growing business.

Wholesale Banking Headquartered in Singapore and London, with on-the-ground expertise that spans our global network, our Wholesale Banking division provides corporate and institutional clients with innovative solutions in trade finance, cash management, securities services, foreign exchange and risk management, capital rising, and corporate finance.

Islamic Banking Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international banking services and a wide range of Shariah compliant financial products that are based on Islamic values.

Private Banking Our Private Bank advisors and investment specialists provide customised solutions to meet the unique needs and aspirations of high net worth clients.

Price: • • • •

Financially supports Deposit Insurance Leasing of cars

14

Promotions: Access to Financial Services Helping promote economic development, reduce poverty & improve living standards Almost three billion people in the developing world lack access to financial services. They lack safe avenues to save, affordable sources of credit and protection from unforeseen events. Evidence suggests that access to financial services is vital for growth and poverty reduction. Improving access to sustainable financial services plays an important role in empowering people, both socially and economically. Services such as Microfinance and Islamic Banking can make a real difference to people in poorer communities, particularly women, helping to alleviate poverty and raise living standards. They can also help to fuel economic growth, opening up new commercial opportunities for Standard Chartered. • • •

•

Some customers may be illiterate and have no way of reaching bank branches. Products tend to be for smaller amounts and less sophisticated; repayments are often weekly instead of monthly. As customers may have no credit history and may only require smaller scale loans, we have to find ways to evaluate credit on a different basis. This has led to the growth of self-help groups. Even though women are seen as a lower credit risk they have traditionally been excluded from financial services.

To address these challenges we have partnered with select Microfinance Institutions (MFIs) in a commercially viable manner to increase access to financial services.

15

Placement: Responsible Selling & Marketing Building loyalty through responsible selling & marketing: Our marketing and selling practices are underpinned by our core values in being trustworthy, responsive and courageous helping to protect our reputation and allowing us to build a sustainable business. Over the past few years, we have established an infrastructure to keep us focused on responsible selling and marketing. Treating our customers fairly, with openness and transparency, is a priority for us. To give us customer insight, we conduct annual surveys across 25 countries. The information we collect helps us develop products that meet our customers' needs - and delight them with our service. As a result, our 'loyal and positive' score has increased from 66% to 83% over the past four years. We have also introduced a new sales performance scorecard and we include indicators such as customer complaints in our sales incentive and reward programme. These help our people focus on building and maintaining sustainable, long-term relationships with our customers. If we receive a customer complaint, we handle it carefully, tracking and monitoring the entire process, from the initial complaint log through to its resolution. At Standard Chartered, we consider the environment - and the impact we have on it - as part of everything we do. Comparative with some other sectors, our direct environmental impact is relatively small - but we are committed to minimizing it across all areas of our business. As well as integrating environmental and sustainable development criteria into our lending decisions, we're opening up new low carbon, low pollution markets through innovative products and services, such as financing renewable energy projects and clean technologies.

16

Recommendation: Standard Chartered Bank is alive with career opportunities. With an established presence in the world's most dynamic growth markets, we can give real meaning to your career. Opportunities to learn and grow, broaden your horizons, work with people from diverse cultures and make your mark at work and in the community.

Internship programs At Standard Chartered, we have a range of fascinating internship programmes designed to support, nurture and challenge you. It can be difficult to decide where to start your career. To help you make that choice, our unique and exceptional internships are designed to give you practical experience of the career you're considering and first-hand knowledge of our people and our environment. A Standard Chartered internship usually lasts 8-12 weeks, giving you: • • • •

An insight into Standard Chartered banking A full induction and development programme A multi-layered support network New business networks and friends

• • •

A CV-enhancing experience Outstanding opportunities for career development and personal growth Consideration for international graduate opportunities the following year

Balanced growth to drive performance Standard Chartered's consistent performance is supported by a strategy of organic growth and geographic diversification. Carefully selected acquisitions are helping the bank to grow in key markets such as India, South Korea, Indonesia, Pakistan and Taiwan.

Consumer banking Consumer Banking serves more than 14 million customers across Asia, Africa and the Middle East where we have the competitive advantage to build significant market positions while delivering strong financial performance.

17

We provide a wide range of innovative products and services, such as credit cards, personal loans, mortgages, deposits and wealth management services, to individuals and SMEs - setting us apart from the competition in many of our markets.

Wholesale Banking Wholesale Banking supports corporate and institutional clients with services in trade finance, cash management, lending, securities, foreign exchange, debt capital markets and corporate finance. Our focus is on providing responsive, innovative and creative solutions to our clients, making us the leading international bank of choice in Asia, Africa and the Middle East.

Recent Deals Date May 2008 Jan 2008 Oct 2007 Sep 2007 Sep 2007 Sep 2007 Aug 2007 End 2006 Sep 2006 Sep 2006

Location Vietnam South Korea South Korea Global Global Global India Taiwan

Standard Chartered announces raising strategic stake in Vietnam's Asia Commercial Bank to 15% Standard Chartered to acquire South Korea's Yeahreum Mutual Savings Bank Standard Chartered First Bank Korea Ltd to acquire 80% stake in South Korea's A Brain, a funds administration company Standard Chartered signs agreement to buy American Express Bank, a wholly owned subsidiary of American Express Company, with operations in 47 countries Standard Chartered to acquire Pembroke, an aircraft leasing, financing and management firm Standard Chartered to acquire Harrison Lovegrove, a leading global oil and gas M&A advisory boutique Standard Chartered announces acquisition of 49% strategic stake in India's UTI Securities, a leading local broking firm. Launched tender offer for 100% in Hsinchu International Bank (USD1.2bn)

Pakistan

Acquisition of 95.37% Union Bank (USD487m)

Indonesia

Acquisition of 26% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD193m). Total stake held in PermataBank by consortium today is 89%.

18

Jun 2006 Dec 2005 Sep 2005 Aug 2005 Jun 2005 Apr 2005 Jan 2005 Dec 2004 Nov 2004 Sep 2000 Jul 2000 Jun 2004

Africa

Acquisition of 25% in First Africa Group Holdings Ltd

N/A

Acquisition of 20% stake in Fleming Family & Partners (USD78m)

China

Acquisition of 19.99% of China Bohai Bank (USD123m)

Bangladesh Acquisition of Amex Bank's Bangladesh business (USD25m) Vietnam

Acquisition of 8.56% stake in Asia Commercial Bank (USD22m)

Global

Acquisition of a minority stake (6%) in Travelex as part of Apax led consortium

South Korea

Acquisition of Korea First Bank (USD3.3bn)

Global

Acquisition of ANZ's Project Finance business with assets (USD15m)

Indonesia

Acquisition of 63% stake in PermataBank by the consortium of Standard Chartered Bank & PT Astra International Tbk (USD355m)

Hong Kong Acquisition of Chase Manhattan Card Company (USD1.32bn) Global

Acquisition of ANZ Grind lays (USD1.34bn)

Hong Kong Acquisition of Prime Credit

19

Conclusion: Great Place to Work Diversity and inclusion - building on our natural strengths At Standard Chartered, we are committed to creating an engaging, inclusive work environment - a place where people can make a difference both as individuals and as part of a team.

Faced with demographic change, competition in our markets and our own rapid growth, the challenge to attract, engage and develop talented employees has never been greater. To make Standard Chartered a great place to work, we focus on four key commitments: • • • •

To attract, engage and retain talented employees. To develop individuals and teams by focusing on their personal strengths. To develop exceptional managers who engage their people. To create a diverse and inclusive workplace that encourages employees to achieve their full potential.

20