ID: Case Study: Analysis and Proposed Solution Introduction This case study is centered towards a proper analysis on Inland National Bank. The bank forms a part of retailing banking sector and is witnessing some problems. As a strategic planner, there is a need to outline certain key solutions for the bank. The senior management of the bank is inclined towards reorganizing banking operations. Some of the branches also had to be closed in order to sustain operations. Inland National Bank was located in Midwestern United States, set up in a medium sized city.
This bank over the years has gained reputation in context of solid financial performance and community involvement. Discussion Inland National Bank in recent times has acquired one of the renowned local banks known as Home Savings Bank. The bank has achieved a strong reputation in terms of maintaining their operations and through causing less impact on local community. However there is a need to restructure retail bank operations in order to achieve maximum output. There is a high probability for closure of some branches. The major area of concern for senior management of INB is two branches Rockdale branch and North Madison branch.
This branch usually lacked certain technological advancements. Advanced technologies can be incorporated in this branch office by lump sum investment. The surroundings of the branch were not suitable for sustaining operations. Neighborhood of Rockdale branch majorly constituted large percentage of old generation. It was essential to close this branch because technological investment shall not generate long term returns due to maximum neighborhood being old. On the other hand, North Madison branch encompassed a poor neighborhood.
Public assistance and welfare supported livelihood of residents in North Madison. The bank decided to incorporate automatic teller machines in this location and this shall eradicate 20 jobs from the system approximately. This approach in North Madison road would facilitate high quality customer service but might not prove to be convenient for employees. As per stakeholder model, an organization’s prime focus should be creating value for all stakeholders. Stakeholders can be classified as internal and external stakeholders. External stakeholders are usually defined as those who have an indirect stake in a company such as distributors, retailers, customers, etc.
On the other hand, internal stakeholders possess a direct stake within the company like suppliers, employees, staff, shareholders, etc (Weiss 39). These stakeholders should always be taken into consideration while proposing a solution for Inland National Bank. Firstly, employees shall not be demotivated in any situation as it would affect overall productivity. Hence North Madison branch closure should be definitely restricted. Automatic teller machines had to be set across North Madison as well as nearby Rockdale branch. This in turn would enable superior customer service and resolve issues brought forth by neighborhoods of these two branches.
Local branch at North Madison should not be closed since it is necessary to enhance employee retention in the company. Employees has to be given proper training at this branch on advanced technology so that queue time is reduced and more customers can be attended simultaneously. This would even help to improve bank reputation in terms of management showing concern towards employees. Technology at any time is a better alternative in current scenario.
The branch closure is not an appropriate solution for the problem witnessed by INB. These well trained employees can be considered as the real asset of the company. On the other hand, Rockdale branch can be closed down with a suitable alternative. The neighborhood of Rockdale branch is highly concerned with closing down of branches. This matter can be resolved by opening up a nearby branch to Rockdale. Apart from this solution, the bank can even recruit customer service executives who would interact personally with neighborhood people and train them on online banking services.
This in turn shall develop trust amongst people that INB is not only inclined towards improving their financial strength but is even equally aligned with needs of local communities. Apart from training neighborhood people, INB can even design personalized customer service to ensure that closure of a particular branch does not indicate end of banking terms with customers. This would enable smooth flow of operations and brand’s public image shall also be maintained. CRA or community reinvestment act clearly states that banks need to outline their source of investment and deposits.
Hence it is vital for INB to exhibit duties towards local communities. These duties mainly encompass focusing on needs of local communities. The first major need of people is reduced queue time in bank and increased convenience level. INB should increase their range of branches specifically where demand is high. This would solve much of the company’s problems and develop a new image for INB. Financial solvency of the bank can be shown through highlighting their operations and being inclined towards backward communities. These communities are generally backward in terms of understanding advanced technological concepts.
Financial solvency can be disrupted if the bank remains more concerned about closure of branches. There should be proper alternatives designed before any action is taken towards job reduction or branch closure. In overall context, two actions need to be implemented by INB in order to upgrade their brand image. Firstly North Madison’s branch cannot be closed down due to high need for customer service and branch at Rockdale has to be substituted by better alternatives. Customer service quality can only be improved by providing personalized services along with technological advancements.
Conclusion As per the study, INB is witnessing major problems in terms of their strategic planning. The neighborhood of this bank is not satisfied with their way of operations. People believe that INB is more concerned about developing their financial strength rather than undertaking needs of local communities. The major area of concern is two branches of INB such as Rockdale branch and North Madison branch. INB’s branch closings can be substituted through productive alternatives. It is essential to make neighborhoods feel that INB is always at their service with better facilities and technology.
This shall develop a strong brand reputation of INB for sustaining its retail bank operations for longer time interval. Work Cited Weiss, Joseph. Business ethics: a stakeholder and issues management approach. Canada: Cengage Learning. 2008. Print.