Capital City Bank
A Case Study on Capital City Bank
Management 12 – G
Aseñas, Earl Adrian C.
Buenavista, Gil J.
Dineros, Georgette Mae P.
Lu, Christine Y.
Refamonte, Ma. Nathalie D.
Tubat, Divina Mari A.
February 5, 2014
I. CENTRAL PROBLEM
What should the management of Capital City Bank do to avoid similar problems in the future?
II. Alternative Courses of Action (ACA)
A. ACA #1 - Assign someone to constantly check on all accounts of the bank to assure that there are no odd cases.
B. ACA #2 - Establish a marketing division that will handle marketing for all accounts
(Figure shows proposed reorganization of Capital City Bank)
C. ACA #3 - Have monthly meetings with the heads of each division
III. Advantages and Disadvantages of Each ACA
A. ACA #1 - Assign someone to constantly check on all accounts of the bank to assure that there are no odd cases.
Advantages:
This is not costly for the company since this person is someone who is already an employee given the task to check on bank accounts. Thus, there would be no additional salary expense.
The regular checking on the bank accounts allows early detection of odd cases therefore, minimizing possible damage.
Disadvantages:
There would be difficulty finding and ideal employee for the job because there is a possibility of having trust issues.
The regular checking is not necessarily for avoidance of odd cases because it is only for detection. B. ACA #2 - Establish a marketing division that will handle marketing for all accounts
Advantages:
The marketing division helps in avoiding odd cases like the Oriental Account problem.
The other two divisions (Trust and Corporate Banking Divisions) will have a lighter load thus, helping them concentrate more on their work.
The marketing division also helps in having specialization of labor.
Disadvantages
Reorganizing the company is costly since it widens the organizational structure, not narrowing.
This course of action is
Management 12 – G
Aseñas, Earl Adrian C.
Buenavista, Gil J.
Dineros, Georgette Mae P.
Lu, Christine Y.
Refamonte, Ma. Nathalie D.
Tubat, Divina Mari A.
February 5, 2014
I. CENTRAL PROBLEM
What should the management of Capital City Bank do to avoid similar problems in the future?
II. Alternative Courses of Action (ACA)
A. ACA #1 - Assign someone to constantly check on all accounts of the bank to assure that there are no odd cases.
B. ACA #2 - Establish a marketing division that will handle marketing for all accounts
(Figure shows proposed reorganization of Capital City Bank)
C. ACA #3 - Have monthly meetings with the heads of each division
III. Advantages and Disadvantages of Each ACA
A. ACA #1 - Assign someone to constantly check on all accounts of the bank to assure that there are no odd cases.
Advantages:
This is not costly for the company since this person is someone who is already an employee given the task to check on bank accounts. Thus, there would be no additional salary expense.
The regular checking on the bank accounts allows early detection of odd cases therefore, minimizing possible damage.
Disadvantages:
There would be difficulty finding and ideal employee for the job because there is a possibility of having trust issues.
The regular checking is not necessarily for avoidance of odd cases because it is only for detection. B. ACA #2 - Establish a marketing division that will handle marketing for all accounts
Advantages:
The marketing division helps in avoiding odd cases like the Oriental Account problem.
The other two divisions (Trust and Corporate Banking Divisions) will have a lighter load thus, helping them concentrate more on their work.
The marketing division also helps in having specialization of labor.
Disadvantages
Reorganizing the company is costly since it widens the organizational structure, not narrowing.
This course of action is