Scenario One Problem Definition: USA World Bank
Over the last few years the banking industry has experienced intense pressure to identify and launch campaigns for new products both in the United States and around the world. Today's competition has made it extremely difficult to select a successful product which in previous years was not as difficult. Therefore, finding a unique and profitable product has become very challenging. USA World Bank is a global organization that needs to create products that will improve profitability and increase its market share. This paper will discuss the challenges, opportunities and the ethical dilemmas that USA World Bank is experiencing during their quest to determine the most profitable product to launch. Scenario One Background
The President of New Product Development for USA World Bank needs to present a product to the Board of Directors that will positively impact the bottom line. A decision has to be made if it will be more beneficial to focus on the consumer or the small business market. There are two alternative products to choose from. The first alternative is the instant reward consumer credit card which works like a frequent flier program which will be partnered with an airline, hotels and retailers. The second alternative is the small business credit card that has a $200,000 credit limit for capital purchases, discounted interest rates and it offers a reward incentive. Mary Monroe, the Vice President of New Product Development is responsible for deciding which new product to present to the board. According to Mary, the Best Market Research analysis shows that the Instant Rewards credit card will be successful through strong incentives; the card could motivate people to switch from their current banks. Jim Wilson, Vice President of Marketing Development asked Mary if he could submit the analysis for a card for small business owners that will allow them to purchase capital items. Jim advised Mary that his analysis used focus groups with clients and small business-owners in addition to statistical information. Mary advised Jim that she would review the analysis but she had already had an independent marketing firm perform a statistical analysis on the Instant Rewards consumer credit card which her department was planning to recommend. Mary later advised Brian Allen, Vice President of Product Development that in the meeting that she held with the executives, they agreed with Best Market and they wanted to move forward with the Instant Rewards consumer credit card. Jim Wilson, Vice President of Marketing Development met with Brian to discuss the credit card for small businesses. Jim affirmed that the results of the focus group were conclusive and that there was a definite need for the small business credit card otherwise small business owners may move their business to other banks. Brian advised that Mary was not completely on board with this proposal and that she ultimately was the one responsible for the submission of the new product with his approval. Mary later sent an email to Jim advising that a decision was made to recommend the Instant Rewards consumer credit card. Brian was concerned that this decision would the risk losing small business owners. Mary mentioned to Brian that they did not see the small business group as a priority. Issue Identification
The first issue of USA World Bank is to increase profitability and market share. The competition is fierce in the banking industry; therefore finding unique and profitable products is very difficult. The second issue is the president of New Product Development has to determine which product to recommend to the board of directors that will be the most profitable. A decision has to be made if to launch the consumer Instant Rewards credit card or the small business credit card or both products. The third issue is that the board of directors had questions regarding the marketing analysis provided by Best Market...
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