2.4 It was proposed during a strategic planning session that African bank should introduce private banking...

  

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2.4 It was proposed during a strategic planning session that African bank should introduce private banking in their product offering. This would be done through a new account that would target professionals earning at least R800 000 per year. This account would give private clients access to benefits such as exclusive rewards, personalised banking services and many more. African bank would be able to charge high bank fees and achieve high profit margins for all additional benefits. a) Identify the business-level strategy for this new account. b) Provide two reasons for the answer in a) above. (2) (2) c) Use the 'suitability' criteria to evaluate this strategic choice for African bank. 2.4 It was proposed during a strategic planning session that African bank should introduce private banking in their product offering. This would be done through a new account that would target professionals earning at least R800 000 per year. This account would give private clients access to benefits such as exclusive rewards, personalised banking services and many more. African bank would be able to charge high bank fees and achieve high profit margins for all additional benefits. a) Identify the business-level strategy for this new account. b) Provide two reasons for the answer in a) above. (2) (2) c) Use the 'suitability' criteria to evaluate this strategic choice for African bank.

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Answer a The businesslevel strategy for this new account is likely a differentiation strategy b Two reasons for this answer are 1 Unique Value Proposi... View the full answer