Topics: Strategic management, Culture, Customer service Pages: 6 (1044 words) Published: July 18, 2013
Executive Briefing for Umpqua Bank
To: Re: Ray Davis, President and CEO Strategic Growth Plan From: Date:

Executive Summary
Umpqua Bank’s goal is to differentiate the customer experience with a creatively nontraditional culture and a radically different mindset of branding locations as “stores” and not “branches” supported by highly innovative and environmentally friendly design. The issue of cost vs. value of design for the Bend Wall Street Project and Humboldt stores is addressed as Umpqua seeks to maintain its culture and values and brand image while undergoing rapid growth through acquisitions and mergers. Two key recommendations are to take steps to create value across their future stores through reconfiguring the stores into two formats, “Full Service” and “Express” and expediting the development of new stores to position the organization for future expansion.

Opportunities to Create Value through Reclassification and Restructuring Strategic Area: Decision Sciences: Location Logistics Opportunities to Create Value:  Classify the Humboldt locations as

Challenges to Create Value:
 Market and customers may not

‘A’, ‘B’ and ‘C’.
 Prioritize their development based on

fully match.
 The distinct cultures (cost v.

Management: Organization of Stores

Accounting: Tracking as Profit Centers

estimated revenues according to the area population. More lucrative locations are built first. Divide Umpqua stores into two categories: “Full Service” (like Pearl district) & “Express” stores. Build Full Service stores in larger metropolitan areas and malls while Express stores serve smaller communities such as Bend. Numerous small size stores in busy neighborhood will grow the visibility of brand & attract crowd. Complement this store reorganization by restructuring financial statements to track performance of the Full Service and Express categories.

  

differentiation) may make it hard to adopt this approach. Revenues are estimated & not accurately calculated i.e. Risk. Compromise certain cultural values. Indifference amongst the associates regarding organization’s cultural and brand image. Small stores may not have all facilities.

 Time and resources will be

Finance: Funding Expansion

 Review all acquisition and merger

data and financial impact.
 Utilize cash reserves and secure

required to make these changes from the existing geographic approach.  This must still comply with state tax information requirements.  This may conflict with the use of cash for other initiatives within the organization.

Marketing: Customer Perception

additional funding through available loans to support expansion activities into the new markets.  Customized each store with cultural values surrounding its neighborhood.  Introduce technology driven automated ‘Interactive Assistants’ to improve customer service levels.

 Marketing and Management

overhead because of extra work to create local cultural values.  All problems cannot be solved by machines.

Opportunity and Challenge Overview
Restructuring the branch concept through the “Full Service” and “Express” stores format will enable Umpqua to expand more rapidly and build stores more efficiently on lower cost and preserve the novelty “cultural experience” of these venues. Prioritizing the construction of stores based upon expected revenue will enable Umpqua to carry out large merger and acquisition process smoothly (in terms of maintaining their cultural bank image) and efficiently (in terms of cost) such as in Humboldt situation. Blending local neighborhood cultural values along with Handshake Marketing into Umpqua’s own cultural value in Bend will create ‘home’ kind of atmosphere and consequently Umpqua’s ‘Brand Experience’ will get embedded into local population. The idea of “Express” stores may face internal opposition. Change is not always readily welcome. In addition, smaller size stores may not...
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