Running Head: Problem Solution: Usa World Bank
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Running head: PROBLEM SOLUTION: USA WORLD BANK
Problem Solution: USA World Bank
Keith Todd
University of Phoenix Online
MBA 510
October 1, 2007
Instructor: Steve Gurley
Problem Solution: USA World Bank
The conclusion of research and statistics is very evident in managerial decision-making. Statistical methods such as descriptive or nonparametric statistics, probability concepts, hypothesis testing and research are very important mechanisms for managers regarding decision-making skills. Descriptive statistics is “methods of organizing, summarizing and presenting data in an informative way” (Lind, Marchal & Wathen. 2004). Furthermore, descriptive statistics are used to describe the basic features of the data in a study. They provide simple summaries about the sample and the measures. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data (Trochim, 2006).
However, descriptive statistics is concerned with collecting data from past events and UWB is offering new products and services they must turn to the second facet of statistics, namely, computing the chance that something will occur in the future. This facet of statistics is called statistical inference or inferential statistics (Cooper & Schindler, 2003).
Inferential statistics encompass the use of statistics to make inferences or deriving a conclusion based on good data about a targeted population. USA World Bank (UWB) is in the process of introducing the firms new products pending the approval from the Board of Directors. Inferential statistics are required for UWBs management team to conduct successful research, organizing, summarizing truthfully and presenting correct data to the board members. In addition, before UWB can successfully launch new products and services the organization must have the market research data available to effectively predict a new customer base. For that reason, probability concepts methodologies must be used in effort to forecast or show the probability of gaining new customers and what products and services they might purchase.
Managers consistently use probability concepts to make business decisions regarding the probability concept data analysis and to make correct statistical inferences. Research is a key element in statistical interpretation and applying the research results to make sound business decisions is imminent. In addition, research allows managers to make decisions based on the data produced via benchmarking against competitors and realizing their successes and failures. Hence the purpose of this paper is to suggest research and statistical concepts to assist UWB frame the right problem, define their end state goals, identify alternatives, potential risks and implementing the viable solution to all their problems. The first step to accomplishing this task is to understand the situation at UWB.
Situation Analysis
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 introduces new products and services annually. Recent historical data shows new products and services have not performed or sold as forecasted resulting in present customers to begin examining the possibility of changing banking institutions.
The primary issue that UWB confronts is which is which product to introduce and launch this year. In dept analysis of the UWB scenario demonstrate that the product development division has not been obtaining representative statistical data, cannot fully interpret and comprehend the data collected, and practices poor internal communication that results in overlapping data collection.
Issue and Opportunity Identification
The primary issue facing USA World Bank is the company launches a new product yearly 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 competing to have their product brought to market, as this years new-product. As an instrument to justify which product should be introduced and marketed, 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 are now challenged to conduct new research and collect new data however; Jim and Mary must collaborate on data collection methods to ensure that customer-bases are properly represented. Through collaboration, Mary and Jim have an opportunity to develop a product that satisfies the needs of their prospective costumer-bases.
USA World Bank outsourced research for new products and services to a company called Best Market Research. This organization was hired to conduct required research in efforts to determine if the credit card product would be a success with small businesses by providing valid and reliable data. Best Market subsequently formed focus groups and developed a survey for customers to fill out to determine if the credit card product indeed is what consumers want as a product and service and hopefully, consumers would switch their banking to UWB. An analysis of the research presented by Best Market Research displayed skewed, inaccurate and biased data. One issue is that the supplied data is based on inaccurate sampling methods and therefore, the data is flawed and good research is required to continue with the planned release of new products and services.
Good research generates dependable data, being derived by practices that are conducted professionally and that can be used reliably for managerial decision-making. In contrast, poor research is carelessly planned and conducted, resulting in data that a manager cant use to reduce his or her decision-making risks. Good research follows the standards of the scientific method (Cooper & Schindler,