Problem Solution: Usa World Bank
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Running head: PROBLEM SOLUTION: USA WORLD BANK
Problem Solution: USA World Bank
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University of Phoenix
Problem Solution: USA World Bank
USA World Bank is a successful international bank with a large consumer and small business base clientele. In order to continue to expand its market share, USA World Bank rolls out a new product annually. Over the past few years the new products have not been very successful causing a number of its customers to examine the possibility of changing banking institutions. At face value it appears that the primary issue facing USA World Bank is which product to launch this year. A deeper inspection will demonstrate that the product development division has not been attaining representative statistical data, does not know how too fully interpret the data collected, and has poor internal communication problems which lead to overlapping data collection.
Situation Analysis
Issue and Opportunity Identification
The primary issue facing USA World Bank is the company launches one new product annually and over the past few years the new products have not been successful. If successful, the new products being explored, Instant Rewards and Small Business Card, will help guide lost customers and attract new customer to USA World Bank. Due to the cost of launching a new product only one of the two will launched so a decision must be made about which product should be implemented.
The Vice President of New Product Development Mary Monroe and the Vice President of Marketing Development Jim Wilson are both lobbying to have their product brought to market as this years new product. As a tool to justify which product should be brought to market, both Mary and Jim have conducted statistical analysis of their prospective markets. A review of the statistical analysis performed by one of the board of directors, Bea Hansen, determined that the data collected by Mary and Jim may not have been representative of the costumer bases. With the doubt created by Bea, Mary and Jim will be rushed to collect new data but this time they will collaborate on the collection methods to ensure that the customer bases are properly represented. Through collaboration, Mary and Jim have an opportunity to develop a product which satisfies the needs of their prospective customer bases.
Stakeholder Perspectives/Ethical Dilemmas
Ethical dilemmas are unavoidable when more than one division of a corporation is competing for the opportunity for its new product to be brought to market. The key stakeholders in this situation include the board of directors, Mary Monroe and Jim Wilson, and the customer base. Given the failure rates of the past few new product launches, the hard questions need to be asked by the board of directors, such as: is the way the supporting data representative of the population? Did the individuals being surveyed feel pressured for the right answer? Did individuals answering the question skew his or her answers based on ownership of the company they manage?
The senior management at USA World Bank needs to make sure that individuals are not working corporate politics to his or her advantage when it could possibly cause a loss of revenue through the loss of customers. Mary Monroe and any other individual using Best Market Research, needs to understand its sampling methods employed and to ensure that the data being provided is representative of the population, for example, paying each member of a focus group $250 may cause the data to be skewed.
Mary Monroe and Jim Wilson need to ensure that products being developed are representative of the need of their customers and not the wants of senior management or the board of directors. USA World Bank needs to have a process for capturing product ideas and be able to efficiently develop and market the new ideas. When developing the statistical support for new products, Mary and Jim need to make sure the data being collected is representative of the population, the information is timely and covers the entire market opportunity and is not skewed by the ownership/management of small business.
Problem Statement
USA World Bank has several problems that need to be identified, the first problem is the hands-off leadership style employed by Brian Allen, President of New Product Development. Brians hands-off approach to leadership has a potential for creativity but it lacks the necessity to have control over his department. Bill J. Bonnstetter, CEO, Target Training International stated at the SHRM Global HR Forum in 1999, “As a rule, a “hands-off” leadership style tends to work best with people who are well matched to their positions. Micro-management or command and control techniques may drive these people to the competition. Although this kind of “hand-in-glove” fit between people and positions may be difficult to maintain in the face of continuous organizational change, the effort promises to return rich dividends in terms of self-directed performance, positive morale and commitment” (Bonnstetter, 1999, p. 7). Brians lack of control over his staff may been the root cause of the failures of the past few product introductions. If Brian had more control over his staff, he may have been able to prevent costly internal communications problems. If Mary and Jim would have communicated or shared product design information with one another, effort duplication on research could have been greatly reduced plus a product could have been developed to cover the consumer and the small business owner. Through collaboration, Mary and Jim may have found fault with the way that they had been collecting data would have made necessary changes allowing more for accurate results.
End-State Vision
End-State goals are the measurable outcomes of USA World Banks situation. The End-State goals, describe significant success factors where improvement needs to be seen; if it can not be measured it can not be managed. USA World Banks first goal is to survive in the highly competitive banking industry; the remaining goals are as follows:
1. Brian Allen needs to attend a leadership course within the next 150 days. After completing the class Brian should still allow for the same level of creativity