This paper will discuss the problems and solutions of USA World Bank (UWB) whom is a major bank with both an international and domestic presence. UWB has branch locations nationwide and enjoys a large consumer and small business base, and has been successful in several worldwide ventures. However, like all international organizations, UWB feels the need to develop profitable new products that will continue to expand its market share. Though new products rollouts have been successful overall, they have been primarily defined within the United States. (University of Phoenix, 2006) Describe the Situation
Issue and Opportunity Identification
The issues and opportunity identifications facing UWB are described as follows: The primary issue facing UWB is the company launches a new product yearly and this year a decision must be made about which product should be implemented. Mary Monroe, Vice President of New Product Development is responsible for deciding which new product to present to the Board. This year Mary is proposing a credit car that will work like a frequent flier program, where customers can earn rewards as a result of their purchases with the card. The card will be called Instant Rewards. (University of Phoenix, 2006) Mary had Best Market Research conduct some feasibility studies for the Instant Rewards Consumer Credit Card product. According to Best, the Instant Rewards Consumer Credit Card will be successful. Their research indicates that the card could actually move people to switch from their current bank. (University of Phoenix, 2006) On the other hand, Jim Wilson, Vice President of Marketing Development has increased UWB's small business segment by 40 percent through successful relationship building with small-business organizations and owners. Jim believes he is in accord with this business segment because he connects well with relationship managers like Aaron Anderson, Beth Brown, and Charlie Cousins who have a direct link to the customers. (University of Phoenix, 2006) Jim wants to implement a Small Business Rewards Credit Card for small business owners. The basis for the Small Business Rewards Credit Card is primarily based on feedback his relationship managers have been receiving from their accounts. Aaron has been told by his accounts that they are considering other banks that have quicker access to capital. He is afraid he may lose 40% of his customers. Beth believes that 30% of her business owners have been eagerly awaiting form something that will enable them to easily busy small capital products. (University of Phoenix, 2006)
Jim believes the Small Business Rewards Credit Card is just what the small business owners are waiting for and without it they will leave UWB for banks that are offering what they need a high-limit card that can be used to purchase capital items. (University of Phoenix, 2006) Presently there is too much competition within the UWB (specifically between Mary Monroe and Jim Wilson). Currently, Mary is responsible with the approval of Brian Allen, President of New Product Development, to submit a new product. Therefore, Jim must get approval from Mary before his project can be implemented. (University of Phoenix, 2006) This structure presents a major problem because Mary and Jim are working against one another instead of working together toward the same goal, which is to ensure that UWB continues to be the leader in their industry. Based on the aforementioned, UWB must revamp their corporate structure to dispel the unnecessary competition and enable all the department heads to work as a team toward a single goal. Stakeholder Perspectives/Ethical Dilemmas
The following are the key stakeholder and the ethical dilemmas: Mary Monroe, Vice President of New Product Development and Jim Wilson, Vice President of Marketing Development. Mary has the first and last word in regard to which product is submitted to the Board for...