Usa World BankUsa World BankProblem Solution: USA World BankUniversity of PhoenixProblem Solution: USA World BankUSA World Bank is a successful full service bank with locations in both international and domestic markets. Banking is a tough business so to stay ahead of the competition the bank tries to develop new product innovations that will allow them to sustain their growth. Most of their new products have been limited to the domestic market. Their new products have had some success in the past; however they appear to have lost ground to some of their competitors. According to Brian Allen, President of New Product Development “You know our new products have pretty much tanked in the past couple of years. We’re under a lot of pressure to deliver something that will be profitable and increase market share,” (University of Phoenix 2007). To be competitive in the banking business, USA World Bank must use statistical analysis to assist them with their new product selection. Currently the company utilizes a third party Best Market Research to assist them with feasibility studies for the selection of their new products. Brian Allen, President of New Product Development for USA World Bank has the final say on what products that are selected for recommendation to the board of directors. The last few products have been marginally successful and he is feeling the pressure to show some results. The past decisions have been based on recommendations from his Vice President of New Product Development Mary Monroe. Her weakness “is that she is not always thorough in her assessment of the research that is given by the third party firms that she hires,” (University of Phoenix, 2007) Finally the Board of Directors will make the final decision on which products are selected for the initiative.
Situation AnalysisIssue and Opportunity IdentificationThere are two groups that are competing for this year’s product recommendation to the Board of Directors. The first group is headed by the Marketing Development group headed by Jim Wilson. Jim’s team has selected a card for small business owners that will allow them to purchase capital items. A line of credit up to $200,000 will be given and will offer rewards for its use. The team also will utilize focus groups to gather data to support their recommendation. The second group headed up by Mary Monroe, Vice President of New Product Development will also propose a credit card with a reward component as well. The consulting firm Best Market Research will perform a feasibility study to support her team’s recommendation. Ultimately Mary’s team won and the decision was made to present the consumer credit card to the board with Jim vehemently objecting. At the board meeting that was held on April 1st, a new board member was introduced, Dr. Bea Hansen a professor of statistics. As the meeting progressed and the statistics were rolled out, Bea questioned the statistical analysis primarily the use of the online survey that was used to gather the data. She felt the gender percentages were wrong since men are more likely to respond to online surveys than are women. She believes a truly random sample would be more representative. The meeting was quickly adjourned and the direction was given to take another look at the data for a week. The challenge to reassess the data gives the group the opportunity to correct Mary’s weakness in trusting the data collected by Best Research. Has the firm given their due diligence in the data collection? Could they expand their new product offerings to include Jim’s idea? It was great that Bea was able to quickly catch the disparity of the data before the decision was made. Perhaps that is why their new product initiatives have been less than stellar.
Stakeholder Perspectives/Ethical DilemmasThere are a diversified group of stakeholders in this scenario that include the Board of Directors, Consumers, and Small Business, the New Product and Market Development groups. Each has their own aspects and interest on which direction the company should head. As notated in the case the Marketing Development Group is responsible for growing relationships between small-business organizations and owners. This group headed by Jim Wilson has increased the business by “40 percent”, (University of Phoenix, 2007) The New Product Group is responsible for “launching new products that will have a significant impact on earnings,” (University of Phoenix, 2007). There is a tremendous amount of pressure on this group since they have not had very much success in the last few years.
The Marketing Group
The New Product Group is a strategic group of small business owners and distributors that collectively grow their businesses. This group does a great job of managing their business as they have done all business in a transparent, accountable way, as detailed by the Board of Directors. Many businesses have been driven to that direction by a fear of not having the support of the management team and their members. Because such business owners work for a group in which all stakeholders work together, it can only mean a reduction in the fear of leaving the group (Schwartz 2008). In addition, small-business owners believe that a good number of those who choose to leave the group want to remain there as the group seeks to grow as a brand and gain their own trust in a brand. This group needs a strong relationship with the owners to accomplish that goal.
The New Group is not just concerned with the potential earnings of any particular business, a new product or a new customer category, but it also wants the group’s ownership, control, and independence for the entire brand. The new company must also help in growing and strengthening its relationship with its shareholders. (Schwartz 2008)
Because it is an organization, it is very independent from the management of the group. Owners share leadership and ownership with all employees, employees, and shareholders. Owners also run the business and get their compensation and/or shares from the group. Owners can buy and sell their share of the group at prices that is equalizing to those of the public sector or the value of property owners. Owners can also have the company’s other shareholders, but only with their permission; the other shareholders can only control the collective share from each ownership group.
At the beginning of this chapter in the group the Board of Directors was instructed to find ways to protect this small business’s independent status and to maintain its independence so that it could continue to operate as the New Product Group for the long-term.[citation needed] In this chapter, we introduce a few of the business benefits discussed for small businesses, including the potential growth of the brand, potential customer service opportunities and opportunities for local economies.[5]
The Management and Organizational Issues
One of the most important aspects of an organization’s brand-building is to build a relationship with the members. To do this it is necessary to build out the company’s organizational culture. While these problems do not always solve these problems, they do play a positive role in getting a business-oriented attitude in the direction of an independent, responsible, non-partisan board. Management and management leaders are responsible for building relationships, not creating them in a hierarchical way. With the formation of the New Product Group, managers are given the responsibility to develop the relationships and culture necessary to build the relationships and culture that create the leadership. Owners need to remain loyal to the group to help to create positive brand-building for this brand and for future growth of the company by building relationships and culture (Ferguson 2006).
There is a long line of business owners who claim that if their business is to succeed in business and continue on its path, the management must maintain a sense of professionalism for the members’ needs and make it