Sunday, February 24, 2019
Abbey policy holders Essay
still the massive loss suffered by Abbey in 2003 has affected voiceholders. At a time where other banks are making record simoleons (Royal Bank of Scotland recorded 6.2 billion profit before tax9), the Abbey shareholders may non even receive any spare capital that has came from the sale of assets in the wholesale bank. As Abbey sold off over 80 per centime of the assets of the wholesale bank, analysts were hoping that Abbey could return between 1.2bn and 1.5bn to investors via a special dividend or share buy back. However, the chief executive of Abbey, Luqman Arnold was said to be increasingly cautious about the amount of cash that would be released due to regulatory changes. Whether or not this will affect the position of the shareholders is still unknown.Customers are an measurable group of s publicationholders for Abbey. They are outside stakeholders. Communicating with them is a lively type of Abbeys strategic plan. They do this by advertising on variant mediums, (telev ision, radio, etc). This has proved successful in the past, as Abbey need won unlike awards for their Plain English approach. This strategy of not using banking terminology was really successful. However, should customers not be satisfied, there is also a customer traffic unit available to help solve disputes.But a late(a) development regarding profits has upset many customers. For the second year in a row, those customers with a with-profits policy will not receive their yearbook motivator. There will also be higher exit penalties for those who withdraw to leave the with-profit policy, which could reach up to 10 per cent. This affects nearly 400.000 of Abbey policy holders. accord to Abbeys employee report Employee involvement and effective communication remain vital to our success. 10 There are various means of communication, from an intranet site, to a every quarter magazine (abbeyview).There are a growing amount of concerns among the cater in Abbey however, in the amount of job losses that are occurring at bottom the organisation. As part of their return to traditional banking, Abbey has been cutting a Brobdingnagian number of jobs, many in the fund management sector. Many jobs have gone abroad to India. This has caused conflict not only amongst employees, but among the universal public also, who are outside stakeholders of Abbey also. They see it as downsizing and victorious jobs away from Britain.Recently, eight executive directors of Abbey have been paid 2.8 million make up of cash bonuses and shares between them, at a time when the participation has suffered massive losses. The banks staff got an average of about sestet percent of their salary as a bonus last year, which was a rise of two percent from a year earlier. A subdivision of the ANGU, (Abbey National General Union) said Staff were very pleased with the bonus that was paid out in a difficult year. However, in light-headed of what management received it wasnt very much. This coul d lead to farther problems in the future.ConclusionAbbey are still in the middle of a three year turnaround, so are asking their stakeholders to bear with them. But with the massive losses, and the seeming disregard for employees, shareholders and customers alike, they may find that it will take longer than three years to have their strategy.