Business Management Report Sample

Business Management Report

Task Instructions

I. Write an introduction on Vancouver City Savings Credit Union, commonly referred to as Vancity, a member-owned financial co-operative in Canada. – 1 page, double spaced, 12-pt font, APA style

II. Students will explore the Vancouver City Savings Credit Union, commonly referred to as Vancity, including the impact of social, technical, economic, environmental, and political factors. Write a summary on PESTEL analysis of Vancity. Provide your own comments on the success, potential, status and sustainability of Vancity in the industry in which it operates. - 1 page, double spaced, 12-pt font, APA style

III. Discuss the effect of economic factors in detail. How it affects the Vancity business, their strategy, their operations and how they contribute to their success or current status. – 2 page, double spaced, 12-pt font, APA style

IV. SWOT analysis for economic factor (table is must)– 1 page, double spaced, 12-pt font, APA style For economic factor, you will examine the business's:

• current strengths
• current challenges
• Future prospects
• Future risks

Solution

I. A brief introduction of Vancouver City Savings Credit Union

Vancity, or Vancouver City Savings Credit Union, is a member-owned financial cooperative based in Canada. Vancity has spent more than 75 years putting sustainability, social responsibility, and community well-being first. The economic, social, and environmental well-being of Vancity's members and the communities it serves has been a top priority since the company's founding in 1946 (Vancity.com, 2023). As per the MBA assignment expert, every member of Vancity, a cooperative, has an equal voice in the credit union's decision-making procedures because of the cooperative's democratic control principles. Vancity has emerged as a leader in the Canadian credit union movement, actively promoting change in the financial sector with a strong emphasis on sustainability and social responsibility. Vancity's goal is to enable people and communities to achieve economic prosperity while promoting social justice by putting the needs and ambitions of its members before maximising profits.

II. PESTLE Analysis of Vancouver City Savings Credit Union

Political: Canada, which has a stable political climate, provides the political framework under which Vancity operates. Vancity's business operations and expansion prospects may be impacted by government financial institution policies and regulations. However, Vancity's emphasis on sustainability and social responsibility is in line with the rising political focus on these topics, which helps to position the credit union favourably (Almehdawe et al., 2020).

Economic: The state of the Canadian economy as a whole has an impact on Vancity's performance. Vancity's lending operations and profitability may be impacted by variables including interest rates, inflation, employment rates, and GDP growth. While economic downturns may present difficulties, a healthy and stable economy gives Vancity the chance to grow its member base and increase lending.

Social: The evolving social environment is consistent with Vancity's dedication to social justice and community well-being. Customers value ethical and socially conscious banking solutions more and more. Vancity's programmes to support small enterprises, marginalised areas, and affordable housing help to build its image and draw in ethical clients.

Technological: Rapid technological improvements have an impact on Vancity's business practises and client relationships. To stay competitive and satisfy changing client expectations, Vancity tends to consistently invest in digital platforms, cybersecurity, and creative banking solutions (Mamun, 2023). Embracing technological improvements can give Vancity chances to boost productivity and offer individualised services.

Environmental: The emphasis on sustainability at Vancity seems to be in line with the rising environmental awareness on a worldwide scale. Vancity puts acute focus on building its image and draws in environmentally sensitive customers by providing green financial solutions, assisting renewable energy initiatives, and taking environmental factors into account when making lending decisions. However, it also has to deal with hazards to the environment and maintain the sustainability of its own activities.

Legal: Vancity complies with all financial institution legislation, including those governing banking, consumer protection, and anti-money-laundering practises. To keep its reputation as a credible and reliable organisation among its members, Vancity must adhere to regulatory criteria.

Overall, Vancity has gained immense success and has a lot of room to develop in the market it serves. Customers looking for ethical and community-focused financial services often find it appealing because of its member-owned cooperative model and emphasis on social responsibility, which set it apart from typical banks (Hutchison, 2022). The dedication to sustainability demonstrated by Vancity is in line with the rising demand for actions that protect the environment.

The credit union has a strong reputation and brand image, a base of devoted members, and a beneficial effect on the neighbourhood. Vancity's continued success can be credited to its capacity to embrace technical breakthroughs, adapt to shifting societal and industry trends, and keep a laser-like focus on its social objective.

Vancity, though, also encounters difficulties and dangers. With the entry of traditional banks and fintech innovators, the competitive landscape in the financial sector is changing. To maintain its lead, Vancity needs to keep coming up with new ideas and ways to stand out. Vancity's operations and profitability may also be impacted by changes in regulations and the economy.

This calls for Vancity to continue to be attentive in managing risks, preserving a sound financial position, and providing value to its members in order to preserve long-term viability (Olding, Boyd & McNeil, 2021). This is likely to enable Vancity continue to succeed in the market and improve the quality of life for its members and the communities it serves by adhering to its cooperative principles and seizing possibilities for innovation and social impact.

III. Analyse the economic factors and its impact

Vancity's business environment is significantly shaped by economic considerations. This tends to directly affect its strategy, daily operations, and overall success. The implications of economic factors on Vancity have been discussed in detail as follows:

Interest Rates: Variations in interest rates affect the borrowing and lending activities of Vancity. it is lower interest rates that encourage borrowing and may increase the need for loans, which, in turn, proves to be advantageous for Vancity's business. Higher interest rates, on the other hand, could slow down borrowing and have an adverse effect on Vancity's profitability. In order to maintain a robust lending portfolio and successfully manage interest rate risk, Vancity must carefully manage its interest rate exposure (Gallagher, 2019).

Economic Development: Vancity's performance is highly correlated with Canada's general economic development. Vancity tends to encounter more lending opportunities, greater deposits, and better financial results during periods of economic expansion. Employment rates, income levels, and consumer confidence are all influenced by economic growth, which can help Vancity expand and succeed.

Housing Market: As a major source of mortgage loans, the housing market has a big impact on Vancity's business. Vancity's mortgage lending activities are influenced by economic factors such housing costs, affordability, and market stability. The demand for mortgage loans, the value of Vancity's mortgage portfolio, and its exposure to credit risk can all be impacted by changes in the housing market.

Unemployment Rates: High unemployment rates might cause consumers to spend less money overall, default on loans, and experience greater financial strain personally and professionally. This may have an effect on Vancity's overall profitability, loan portfolio quality, and collection rates. On the other hand, low unemployment rates signify a stable economy, which helps Vancity succeed by supporting its lending activities (Mamun, 2023).

Regulatory Environment: Economic variables may also have an impact on the regulatory framework in which Vancity operates. Vancity's operations and business model may be impacted by changes in governmental laws and regulations, such as those pertaining to capital needs or consumer protection. For Vancity to preserve its reputation and stay clear of any legal or financial repercussions, compliance with new legislation is crucial.

Thus, Economic factors have a direct impact on Vancity's strategy and operations. Vancity keeps a varied loan portfolio, conducts thorough risk assessments, and adjusts its lending practises to changing economic situations in order to reduce risks and seize opportunities. Its present circumstances are impacted by its capacity to successfully handle economic changes.

IV. SWOT Analysis of Vancouver City Savings Credit Union

Table 1: SWOT analysis for Economic Factor
(Source: Vancity, 2023)
 

Reference List

Almehdawe, E., Khan, S., Lamsal, M., & Poirier, A. (2020). Factors affecting Canadian credit unions' financial performance. Agricultural Finance Review, 81(1), 51-75. Retrieved on 10th June 2023 from https://sci-hub.se/https://www.emerald.com/insight/content/doi/10.1108/AFR-06-2019-0065/full/html

Gallagher, S. (2019). Banking performance and socio economic development. Scientific e-Resources. Retrieved on 10th June 2023 from https://books.google.co.in/books?hl=en&lr=&id=j-LEDwAAQBAJ&oi=fnd&pg=PR15&dq=economic+performance+of+Vancouver+City+Savings+Credit+Union&
ots=o3g6h5yjbK&sig=ObXHvoBh1_6Hf4PLtxquzSEkWTU&redir_esc=y#v=onepage&q=economic%20
performance%20of%20Vancouver%20City%20Savings%20Credit%20Union&f=false

Hutchison, A. (2022). Third Sector Finance in Indigenous Economies. The Journal of Commonwealth Law, 4. Retrieved on 10th June 2023 from https://www.sciencedirect.com/science/article/abs/pii/S1059056023000989

Mamun, A. (2023). Understanding growth and its policy implications for Canadian credit unions. International Review of Economics & Finance, 86, 652-665. Retrieved on 10th June 2023 from https://www.sciencedirect.com/science/article/abs/pii/S1059056023000989

Olding, M., Boyd, J., Kerr, T., & McNeil, R. (2021). “And we just have to keep going”: Task shifting and the production of burnout among overdose response workers with lived experience. Social Science & Medicine, 270, 113631. https://www.sciencedirect.com/science/article/abs/pii/S0277953620308509
Vancity.com. (2023). Vancity. Retrieved on 10th June 2023 from https://www.vancity.com/