The Case for UBS Implementing a New Marketing Strategy
The sixth largest bank in the world-famous in investment banking, wealth and asset management is drastically degenerating tolow keys. Consequently, the imperative campaign to restructure branding management strategy for UBS is critical to its long term survival and stability in the face of stringent global competition. Sifting through the troubling challenges from the remnant effects the recent, magnified fiasco have caused with US tax authorities in the tax evasion case against US investors on respective individual investments, by which the bank allegedly kept its tax haven niche on their behalf, links to cause the institution to resilience to regress its usually strong position in the markets. The challenge moreover underlies the flaws bank secrecy effectuate to abide with integrity on international taxation compliance as a universal norm since Swiss laws do not find the need to disclose assets as culture influence dictates this norm and is not regarded as a criminal act. However, nevertheless, the United States is a major superpower who wields the clout on a global scale and is a potential to divest the bank’s interests that may risk UBS to maintain global scale trust. Research by Morrison and Foerster (2011) reveal the bank’s involvement in other institutional disputes placing public trust at stake when US based Financial Industry Regulatory Authority (FINRA) filed a lawsuit against the conglomerate with large scale amounts in restitution and penalties to investors for producing misleading statements and omissions in connection to offerings on risk free principals through principal protected notes. Consequently, the large scale clout by media coverage globally blurred UBS in its overall global strategicposition among the investing public and a class action litigation resulting to rank demotion in global financial services in the face of stiff global competition.
Furthermore to impose the following recommendations that will enable UBS from its current global market position is critical to repave into recovery:
Reposition to Implement a Renewed Strategy: While UBS hovers in the global realignment phase to recover public trust, it should reemphasize competitive position in the global financial industry not only focus to promote on more intensive and wider scale coverage of strengths on critical clientele based infrastructures in retail investment banking, wealth and asset management through massive campaigns on brand management While the institution recognizes this expertise as a current deficiency, sheering to competitive positions and advantages over the financial services industry that places them to an edge to entail a strategic position in target markets is necessary. Brand communication is an alternative key to compensate with collective restitution to the investor public on institutional shortcomings from the scandals caused. One way to demonstrate this bears on the advantage in offering competitive and low interest rates as a promotion mechanism to various investment packages while its corporate position is blurred with clarity, impact, and focus on target markets (World Advertising Research, 2004, p.3). Positioning on this strategic stance renders the substantial advantage while target markets are not within reach the adversaries may cause a negative impact. The overall communication strategy should focus to implement a persuasive language in its propaganda as the key element to cohere to the public vital tenets in upbringing conviction on brand communication strategy incorporating the resolution to an extensive domain to cohesive corporate policy compliance to compensate past institutional flaws in its long term marketing portfolio. This strategy should communicate top down to lower hierarchies which partly function as the source niches involving the disputes. This is the most effective way to establish a unique brand identity in certain clientele segments that align the market (World Advertising Research, 2004, p. 3). To resort to an impartial corporate audit policy and compliance plan implementing down to departmental levels should pattern after this strategic marketing to assure policy assurance on all corners of the corporate structure.
Incorporate Stakeholder Participation: The issue with the United States on taxation interests on the claims on investments US investors own violating the bank secrecy law may hold valid but calls the need to incorporate stakeholders or investors to stay informed on the any surfacing issue that impact investments on a periodical basis. This claim attributes to a complex network consequence inevitably wrought from an international marketing strategy approach deriving income dividends from these investments which become the object for national authorities to claim sovereign interest as a right rather an option. Should investors or the company either way initiate triad communication from the onset without jeopardizing not only the bank secrecy law but save an actively implemented marketing strategy with all parties informed to encourage investment flows without penalty costs the lawsuit incurred and would have prevented to loom the dispute. Whether directly or indirectly such investors intend to conceal taxes through the secrecy law would enable stakeholders or investors to understand the complex consequences which pervasive risks may reach, to strategically devise and implement a plan to position to minimize or evade the risks involved while meeting shareholder expectations (Doole and Lowe, 2008, p.49). This is true especially on the implications the FINRA case may assert in other potential claims that may result to relevant consequences and beyond relating to Treasury Inflation Protection Securities (TIPS) by which profits from volatility action may reach beyond break-even levels even at-the-money levels within TIPS that interpret to be taking at premium, thus no actual profit is realized but claimable by tax to the United States. UBS management should incorporate TIPS in shareholder discussions on this issue a misinterpretation to resolve since this may uphold otherwise the potential source for future disputes and attract inflation concerns among investors (Lupoli, 2010, p.8).
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