Analysis of “La Caixa”: History, Strategy, and Social Impact
La Caixa
Marc Capdevila, Anna Paola Postigo Raventós, Jordi Torrents
Index
- Introduction
- Company Description and Activity
- Company Strategy
- Development and Growth of the Company
- Human Resources
1. INTRODUCTION
This work analyzes “La Caixa” and its commitment to social responsibility. We selected this company because of its strong social work program, believing that a financial institution’s commitment to social well-being is paramount.
After researching various options, we determined that “La Caixa” serves as an excellent example of a company with a strong social focus. Founded in 1904 by attorney Francesc Moragas Barret, “La Caixa” aimed to encourage savings and retirement planning, providing crucial support to the less fortunate. The company has been a pioneer in social welfare in Spain, a cornerstone of today’s society.
This work will explore various aspects of “La Caixa,” including its history, objectives, organizational structure, strategy, growth, international development, and human resources policies.
2. COMPANY DESCRIPTION AND ACTIVITY
With over 10 million customers, “La Caixa” is the third-largest financial group in Spain and a leading bank in Spain and Europe. Continuing its expansion plan beyond Catalonia and the Balearic Islands, it boasts the largest branch network in the Spanish financial system and actively supports social, cultural, educational, and scientific initiatives through its Welfare program.
Key Figures:
- Universal Network: 5211
- Specialized Centers: 114
- Corporate Banking: 4
- Company Banking: 79
- Private Banking: 31
- Offices in Spain: 5325
- International Offices: 14
- Total Offices: 5339
Social Work:
“La Caixa” is deeply committed to social work. Its objectives include addressing social concerns, complementing government action, and facilitating access to housing, violence prevention, and job placement programs. “La Caixa” allocates significant resources to meet society’s emerging needs.
The company’s commitment to responsible management encompasses all stakeholders: customers, employees, and society. Its core values are Trust, Social Commitment, and Quality.
In the financial realm, “La Caixa” operates a universal banking model, striving to provide comprehensive services to all, regardless of social background.
3. COMPANY STRATEGY
Mission:
To encourage saving and investment by offering comprehensive financial services to a broad customer base and making a decisive contribution to society by addressing basic social and financial needs.
Vision:
The strategic action of “La Caixa” is guided by its core values: quality, decentralization, accountability, innovation, efficiency, and safety.
Objectives:
- Maintain its leadership position as the national savings bank with the most extensive and solid branch network.
- Encourage savings and improve the economic prospects of individuals and businesses.
- Improve the status of vulnerable social groups and promote their integration through social work initiatives.
Goals:
- Become the leading savings bank with the most profitable branches by 2015, generating profit and value while providing personalized advice to SMEs and households across Spain.
- Increase profits by 20% over the next 5 years through related organizations like Criteria and its insurance cluster, reinvesting these profits in the community through social work.
Organizational Structure:
The organizational structure of “La Caixa” is divided into two main parts: the governing bodies, responsible for the overall direction of the entity, and the various departments responsible for specific functions.
The governing bodies are comprised of the General Assembly, the Monitoring Committee, and the Board of Directors, each with members representing different stakeholders, including founding entities, local authorities, employees, and depositors.
The departments are organized functionally, with each department having a well-defined role and responsibilities. This structure ensures clarity and efficiency in operations.
4. DEVELOPMENT AND GROWTH OF THE COMPANY
Location:
“La Caixa” has a national presence with 5530 branches across Spain. Catalonia and the province of Barcelona have the highest density of branches and ATMs, reflecting the company’s origins. The headquarters is located in Barcelona on Avenida Diagonal 629.
The company operates various types of offices, including traditional branches, company offices, and offices dedicated to high-income clients. All offices are strategically located to maximize accessibility and customer convenience.
Dimension:
- Turnover (2008): 414,507 million
- Consolidated Net Profit (2008): 2011 million
- Employees (2008): 25,335
- Number of Offices (2008): 5530
- Number of Countries (2008): 11
Growth Model:
“La Caixa” experienced significant growth during the economic expansion, opening new branches in response to market demand. However, with the economic crisis, the company shifted its focus to redistributing personnel and optimizing its branch network.
The company’s growth has also been driven by acquisitions and the creation of new businesses, both horizontally and vertically. “La Caixa” has established a network of subsidiaries and affiliated companies, including:
- Criteria Caixa Corp.: An investment holding company.
- Servihabitat: A real estate company.
- MicroBank: Provides microloans to individuals and small businesses.
- CaixaRenting: Offers car renting services.
- “La Caixa” Private Banking: Caters to high-income clients.
- SegurCaixa Holding: The insurance arm of the company.
- FinConsum: Provides personalized financial management.
- GestiCaixa: A fund management company.
- CaixaExchange: Facilitates online trading between companies.
- VTH: Provides mortgage valuations.
Internationalization:
“La Caixa” has pursued two models of internationalization:
- Partnerships: Collaborating with banks in various countries to offer “La Caixa” financial services through their networks.
- Direct Implementation: Establishing a direct presence in new markets, such as Morocco, Romania, and Poland.
5. HUMAN RESOURCES
Number of Employees:
As of 2008, “La Caixa” had 25,335 employees, with moderate growth attributed to the expansion of its banking and private banking businesses.
Organizational Structure:
The organizational structure of “La Caixa” is hierarchical, with governing bodies overseeing various departments, including communication, advertising and marketing, administration, research and development, finance, investment, and social work.
HR Policies:
“La Caixa” is recognized as a desirable employer, facilitating the recruitment of qualified professionals. The company emphasizes training and development, with over 1,000 internal instructors facilitating knowledge transfer.
Talent management is a priority, with programs focused on identifying and developing high-potential employees. The company also prioritizes dialogue with union representation and maintains a strong focus on employee well-being and work-life balance.