Problem Solution:Usa World Bank
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Running head: PROBLEM SOLUTION: USA WORLD BANK
Problem Solution: USA World Bank
University of Phoenix
MBA 510
October 8, 2007
Problem Solution: USA World Bank
USA World Bank is a global bank and branches located nationwide. They enjoy both a large consumer and small business customer base. USA World Bank has been successful over the past several years but most recently their new product roll-outs have not as successful and allow them to remain competitive in the marketplace. USA World Bank is in need of a new product to keep their current client base as well as attracting new ones. One of the main issues facing USA World Bank is which product to launch this year. USA World Bank has two good products to consider, the Instant Rewards Credit Card or the Small Business Card. This paper will identify the other issues and opportunities USA World Bank can capitalize on, alternative solutions to be considered, the risk and mitigation techniques and finally the optimum solutions to be implemented.
Situation Analysis
Issue and Opportunity Identification
USA World Bank has many issues to be resolved. When a company is faced with issues or negatives, they have the abilities to turn it into an opportunity or a positive. One of the issues USA World Bank is facing is the lack of a consistent process for researching and selecting new products. Mary Monroe, Vice-President of New Product Development had hired Best Market Research to conduct feasibility studies for their instant reward credit card. According to the research, the instant reward card would be successful in their markets. On the other hand, Jim Wilson, Vice-President of Marketing Department conducted his own focus group study and found support for the small business card. USA World Bank has plans for launching only one new product for this year. Good Research generates dependable date, being derived by practices that are conducted professionally and that can be used reliably for managerial decision making (Cooper & Schindler, 2003, pp. 14). Brian has the opportunity to develop one process for researching and selecting new products.
Brian Allen, President of New Product Development, is a confirmed hands-off supervisor. In several of the meetings with Mary, Brian did not review the materials with her. In the presentation with the board, he was unable to answer questions, especially from Bea, the newest board member and a professor of statistics. Knowledge gap is one part of the sources of managerÐ-researcher conflicts. Managers seldom have either formal training in research methodology or research expertise gained through experience (Cooper & Schindler, 2003, pp. 21). Brian has the opportunity to prove to the board of directors and others that he is still capable of launching and leading successful products.
In the meeting between Brian Allen and Jim Wilson on April 4th, Brian was interested in the methodology used for the small business reward card Jim had recommended. After Jim had told Brian about using a focus group study, Brian made the comment about having one company-wide approach to identify products. Jim responded by agreeing to use a consistent methodology for launching new products. The role of the Hypothesis serves several important functions:
Guides the direction of the study
Identifies facts that are relevant and those that are not.
Provides a framework for organizing the conclusions that result.
Suggests which form of research design is likely to be most appropriate (Cooper & Schindler, 2003, pp. 52).
USA World Bank has the opportunity to launch both the small business card as well as the instant reward credit card. Jim and his team identified an opportunity for their small business clients. They used small business owners within each of their respective regions as the methodology. This allowed for coverage throughout the entire country. When a population can be clearly divided into groups based on some characteristic; then stratified random sampling can be used to guarantee that each group is represented in the sample (Lind, D.A., Marchal, W.G., & Wathen, S.A, 2004, pp.254). Brian has the opportunity to consider this type of research to ensure successful market products.
Stakeholder Perspectives/Ethical Dilemmas
The decisions made by the USA World Bank executive leadership team will affect the stakeholders. Sometimes competing values, rights or interests get in between the different groups. The key stakeholders are the Board of Directors, the employees and the Executive Leadership Team. The first group of stakeholders is the Board of Directors. The board of directors is there to help the company make the right decisions, which will lead to growth and shares in the marketplace. The ethical dilemma is the board members are usually stockholders and want what is best for the company. The board of directors asked several questions that called the research into question. This must be done to ensure a profitable product. Lind, et al (2004) stated because there is uncertainty in decision making, it is important that all known risks involved be scientifically evaluated.
Another stakeholder group is the employees. Employees would be considered that if the current trend continues of less than stellar market success, then USA World Bank may have to consider laying off employees. Job security would be on the minds of the employees.
The last stakeholder group is the executive leadership team. They are responsible for improving the recent trend of marginally successful products. The dilemma is whether or not to consider launching only one product by years end or two products. There could be some board members who disagree with his decision.
Problem Statement
USA World Bank will be successful in retaining current customers, attracting new customers, increasing market share and assets by properly collecting and analyzing data, having the leadership team that is on one page and educated in understanding the research data.
End-State Vision
USA World Bank ultimately wants to stay even or ahead of their competitors by establishing a standardized process for researching and selection of new products, increasing their market