On the question of Midland Armenia Bank branches location

Abstract

Midland Armenia Bank jsc, a member of HSBC Group is the first international Bank in Armenia. Since its establishment Midland Bank has been the market leader in the banking industry. The bank started its operations in March, 1996. The underdeveloped banking industry of Armenia could not match the power of Midland Armenia Bank technologies and highly skilled professional management. Despite a great many difficulties, the Armenian banking system is growing and progressing. Armenian business in January 1, 1998, were provided 35.35% more loans than in January 1, 1997. For the same period, deposits of residual savings grew by 45.9% total capital by 47.4%; statutory capital by 67.2%. This progress is largely explained by the influence of current political, legal, socioeconomic, and competitive forces in the marketing environment. Quite successful performance of the bank along with a currently favorable marketing environment, create exceptional conditions for bank expansion. In its development Midland Armenian Bank is solving different naturally emerging problems one of which was set before our group to determine specific places for Midland Armenia Bank branches in Yerevan city. This report offers solutions to the problem. At the outset of the report we characterize the situation in the banking industry and market development trends, and the marketing environment in Armenia. The report includes information about background of Midland Armenia Bank, its present situation, problems of the company connected with new branch openings and existing market opportunities. Then the report presents criteria for branch locations. These criteria were worked out on the basis of analyses of the following factors: Midland Armenia Bank management ideas about appropriate locations; Location policy of competitors; Trends in bank branch opening/closing; Dispersion of existing and planned branches over the city; Midland Armenia Bank customer’s preferences concerning bank branch locations; Prospective business and trade centers, industrial zones, and residential areas in accordance with the plan of Yerevan city development; Topography and geography of Yerevan; Trends in demographics in Armenia; Investigation of sites. The final part of the report is devoted to determination of specific places, illustrated in the map, for Midland Armenia Bank branches.