...Mountain Bank A Case Study I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given: a. Mountain Bank should follow the Cost leadership strategy and the differentiation strategy. (See pages 47—51) i. Mountain Bank should follow these strategies because a point has been made that competitive business strategy and human resource strategies must work together to ensure high organizational effectiveness (Stewart & Brown, 2009). We must examine more closely the competitive business strategies, which encompass various types of strategies for Mountain Bank. Mountain Bank has chosen the business level strategy, which allows them to compete with other banks that offer the same four areas: corporate banking, retail banking, real estate and mortgage banking, and consumer lending. Within the business level strategy, Mountain Bank can elect to compete with their competitors by implementing these two strategies with certain human resource approaches. ii. Another reason that Mountain Bank should follow this strategy is in order to achieve this competitive advantage in the marketplace, Mountain Bank must utilize both the cost and differentiation strategies, which are known for the positional advantages that describe an organization’s position as a leader. Although differentiation strategy seeks to produce goods and services that are in some manner superior to what is produced by competitors (Stewart & Brown, 2009), and cost leadership...
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...Mountain Bank Patrice Mack Professor Jama Rand HRM 530 January 22, 2012 Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. There are two different strategies that Mountain Bank should use and focus on in order to achieve competitive advantage. The first strategy is the cost leadership strategy which is geared toward businesses that want to produce goods and services cheaply. Mountain Bank has four lines of businesses and they are retail banking which consists of checking and savings accounts, consumer lending which are loan and lines of credit, real estate and mortgage banking this is mainly handling mortgage loans and the last one is corporate banking which caters to businesses. In order for this strategy to work effectively for Mountain Bank would have to provide services that are better than others but at a lower cost. This however would be extremely difficult for them to achieve because mergers and acquisitions have not only affected them but has made some of the larger banks powerhouses in the banking industry. Realistically speaking the cost leadership would not be an effective strategy for Mountain Bank to use because there are larger banks who due to their size can offer their lines of business at lower costs. If they did then Mountain Bank would not be able to be able to compete. The second strategy would be differentiation strategy which concentrates on providing goods and services...
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...1. Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. For Mountain Bank to achieve a competitive advantage over the other local banks in the Northwest region of the United States, they need to introduce both a corporate level and business level strategy. First it start with the big boss or CEO, to decide in what direction it will be sending the company’s four business units. The most critical strategy that needs to be implemented is business level strategy. “[This] concerns how the organization will compete with other companies that provide similar goods and services.” (48) In the Case Study it states that Mountain Bank has four business lines which include retail banking, lending, real estate/mortgage banking and corporate banking. For Mountain Bank to gain the advantage against its competitors each business line needs to have its own strategy that clearly defines what is to be expected from each employee and what is to be provided to each customer. Mountain Bank should implement the cost leadership strategy where the most efficient and cost effective way of business is produced. In this day and time money is a rare commodity that many people are not making enough of and are not ready and willing to part with it often. While taking this into consideration, it is understood that Mountain Bank will be able to take advantage of the tough economic times. Mountain Bank needs to come up with ideas just like Southwest...
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...Mountain Bank Ortis Pyronneau HRM-530 Dr. Zephia A. Brown, SPHR Strayer University * Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace Mountain bank is in a changing industry and there is more than one factor to consider in order become more profitable. In the four areas that the Bank operates, it’s not capitalizing well enough in any of them. There is a lot to be done on order for the company to be able to attract new customer and to deepen relationship with the existing ones. Technology has changed the way that consumers see banking and also the changes in regulation also create rooms for other products. Managers have to be able to see what is needed in the market in order to acquire talents to serve the existing customer and to attract new customers. (Career Guide to Industries, 2009) The most efficient way to start a banking relationship is through retail banking. The tellers are doing a good job however; the company has to develop the acquisition team in order to grow. The tellers are often the one and only persons the customer will see and they are to be proficient enough to keep the customers happy. At the same time, it is hard for them to be able to profile a customer and to be able to recommend the right products for that person; it is hard to be done by someone without sales training. The bank provides services in four areas and besides the retail banking all can be done on a referral base. (JPMorgan...
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...Mountain Bank 1. What competitive business strategy do you recommend for Mountain Bank? I would probably recommend the differentiation business strategy due to the following: a. retail banking b. consumer lending c. real estate & mortgage banking d. corporate banking e. customer service In this case Mountain Bank they should focus on the contingency approach, which would lead to innovation, quality enhancement and career development. Mountain Bank already has a big share of the retail banking market and building on the competitive advantage they can increase on the other aspects of the banking business to move the business at least 75 % in the market. Secondly, they can leverage customers in retail banking to more profitable real estate and corporate business lines which would increase profits. 2. Based on the universalistic approach and commitment strategy, what types of human resource practices do you recommend for Mountain Bank with respect to its tellers? Mountain Bank should be using the customers’ experiences with tellers as the single most important driver of customer satisfaction, I am recommending they follow several types of human resource practices in job tasks such as empowerment, communication, training, compensation, and staffing areas: broad job responsibilities, meaningful tasks, high levels of responsibility, building employee confidence, encouraging suggestions, extensive new employee training, formal training for everyone, pay for performance...
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...Competitive Business Strategy for Mountain Bank Strategic Human Resource Management January 19, 2012 1. Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. When establishing a strategy, one would need to know what a strategy is in order to achieve that goal. A strategy is look at as being “a set of coordinated choices and actions” (Stewart & Brown, 2009, p.66). So to come up with a competitive business strategy, we would need to take a look at certain factors. This would determine what strategy or choice and action we would need to take in order to make the most of our resources in order to achieve a profit. We would need to take a look at the organization and take into consideration its strengths and weaknesses. We would need to take a look at what type customer we are actually serving and what their needs are. Last, we would need to take a look at our current resources and see if we would need to either add, subtract or manipulate and change in order achieve our goal. I think with Mountain Bank, I think our strength would be our capability to provide a personal touch with our tellers. If you look at the banks business demographics, Mountain Bank has 50% of the market on retail banking. That’s half of the banking business for that part of the United States. Mountain Bank would need to find a way to extend that type of service and customer touch to the other markets. I feel in order to...
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...Mountain Bank is an establishment found in the northwest of the United States. There are four areas of business lines used by Mountain Bank they are corporate banking, retail estate and mortgage banking, consumer lending and retail banking (Stewart & Brown, 2009). Consumer lending and retail banking has been the financially beneficial to Mountain Bank as they have 50% and 25% of the market respectively (Stewart & Brown, 2009). However Mountain Bank has not been able to capture the market in the area(s) of real estate & mortgage banking as they have less than 10% of the market. They also have not been able to effectively branch out into the corporate market as they currently capturing less than 5% of the market (Stewart & Brown, 2009). Mountain Bank is attempting to use their high percentage of the retail market and carry it into the real estate & mortgage and corporate markets giving them a better standing against their competitors. I will attempt to create a competitive strategy for Mountain Bank that will strengthen their standing in the areas where they are currently limited. Using the universalistic approach and commitment strategy I will recommend several human resources practices that will be beneficial to their tellers. I will discuss the four human resource strategies that may be implemented within an organization and apply one of the strategies to that of Mountain Bank tellers. Discuss the strategies that Mountain Bank should implement to achieve...
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...1. Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. Changes are occurring in all organizations. Mountain Bank is no exception. Mountain Bank has a strong presence in retail banking and limited presence in the consumer lending, real estate and mortgage banking, and corporate banking lines. It is recognized that corporate banking is profitable. Since Mountain Bank has such a small presence in the corporate banking market, it has to position itself to communicate this business line to a new audience. To achieve a competitive advantage in the marketplace, Mountain Bank should implement the differentiation strategy. Mountain Bank will set itself apart from its competitors by offering a unique twist to its services. It may offer an added benefit to its customers who are already receiving the basic services. The employees at Mountain Bank hold the key to achieving the competitive edge. Mountain Bank’s employees would hold an advantage over their competitors as they tend to be cordial and highly skilled which makes customers feel trusting. A personal greeting such as “Good morning, Mr./Mrs. Jones” from the bank employees when customers enter for services would be a tremendous plus for the bank. Along with that greeting, employees would make the customers aware of the availability of the new services that the bank now offers and they are not yet taking advantage of. 2. Describe the types of practices a human...
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...1) What competitive business strategy do you recommend for Mountain Bank? I’d recommend a focus business strategy. In this case Mountain Bank should focus on its retail banking business line because, firstly, they already have a big share of the market and building on the competitive advantage that they have it would be easier to increase it, secondly, according to the case, they can leverage customers in retail banking to more profitable real estate and corporate business lines which would also increase profits. 2) Based on the universalistic approach and commitment strategy, what types of human resource practices do you recommend for Mountain Bank with respect to its tellers? As “customers’ experiences with tellers is the single most important driver of customer satisfaction”, I recommend the following types of human resource practices in job tasks, empowerment, communication, training, compensation, and staffing areas: broad job responsibilities, meaningful tasks, high levels of responsibility, building employee confidence, encouraging suggestions, extensive new employee training, formal training for everyone, pay for performance, very selective recruiting, and promotion of the best workers. 3) Which of the four human resource strategies do you recommend for Mountain Bank with respect to its tellers? Why? I recommend a committed expert HR strategy because it would be aligned with business strategy and because the job requires specialized skills such...
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...Mountain Bank Case Study Assignment One Aisha Peake HRM 530 Dr. Reeley Strayer University January 15, 2012 1. What competitive business strategy do you recommend for Mountain Bank? Retail banking is the branch of banking that includes checking and savings accounts. These are what most people associate with banking. Mountain Bank holds about 50 percent of the retail portion of the banking industry. According to recent studies conducted, Mountain Bank's tellers are an essential part of this success. This is mainly due to the fact that bank teller's are the only part of the banking system that the general public sees. For a banking customer, the experience with a teller can make or break the decision to switch banks. To ensure that they continue to hold such a large portion of the retail banking industry, Mountain Bank will need to develop a business-level competitive strategy. "Business level strategies detail actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product or service markets. Business-level strategy is concerned with a firm's position in an industry, relative to competitors" (Azriel, 1999). This strategy is favored over a corporate-level strategy because it will focus on how Mountain Bank will compete with other banks offering the same services. Of the two main business level strategies, the differentiation strategy is what Mountain Bank should implement....
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...2011 Mountain Bank A Case Study I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given: a. Mountain Bank should follow the differentiation strategy. i. Mountain Bank should follow this strategy because few organizations can successfully use the cost leadership strategy. One problem with a cost leadership strategy is usually only one organization can be the lowest-cost provider in any industry. The organization that is often successful at the cost leadership strategy is an organization that has a large share of the market (p. 48). Mountain Bank does not have a large share of the banking market. Mountain Bank is located in the northwest United States. According to current estimates Mountain Bank has about fifty percent of the market for retail banking, about twenty-five percent of consumer lending market, less than ten percent of the real estate and mortgage banking market, and less than five percent of the corporate banking market in its area (p. 69). ii. Another reason that Mountain Bank should follow this strategy is one of the best methods for achieving gains in the real estate banking and corporate banking is cross-selling. Cross-selling occurs when tellers and customer service representatives convince customers with retail accounts to open corporate accounts or to obtain home mortgages from Mountain Bank. Recent studies have found that bank tellers are critical to the success of Mountain Bank. One study...
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...Mountain Bank Case Daniel De Los Santos Jr. Strayer University Hrm530- Human Resource Management February 23, 2010 Mountain Bank A Case Study I. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given: a. Mountain Bank should follow the Differentiation strategy. i. Mountain Bank should follow this strategy because they can provide a different value in order to offer their current clients other products and services. This strategy focuses on offering value by providing something better than competitors. For example excellent customer service. ii. Another reason that Mountain Bank should follow this strategy is their client and employee relation will improve. Bank tellers are important and by training them in other products, they can offer these products to clients. Having a close relationship with clients is very crucial because they are the ones that are important to any successful business. iii. The last reason that Mountain Bank should follow this strategy because it can help them adapt rapidly to changing customer preferences. Consumers have the tendency to change their mind about their needs and wants and Mountain Bank has to be ready to make the necessary changes to cover those needs and wants. This strategy can help Mountain Bank achieve their goals, which are to increase their markets in real estate and corporate areas. II. Given that...
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...In order for Mountain Bank to gain a competitive advantage in the market place it needs to expand on services that generate income, implement services that cost less than their competitors, and use their already established customers to generate more business. Mountain Bank has some great things going for it. The main thing is that they have a great portion of the retail market that puts them in constant contact with possibly hundreds of customers a week. This will allow for an opportunity to up sell and increase revenue. Expanding on services that generate income would push Mountain Bank into increasing their corporate market practices as well as real estate and mortgage banking. One way to do this would be to implement a differentiation strategy to break away from the pack. Differentiation strategies are interested in innovation and quality enhancement with an emphasis on specific roles (Stewart&Brown, 2008, p.66). This type of strategy is exactly what they need to set themselves apart. Implementing services that cost less but provide more would be ideal. A cost leadership approach would benefit Mountain bank in two ways. First it would allow Mountain Bank to utilize its most valuable resource-the tellers and it would allow for a strategy that would tell the tellers exactly what it wanted them to do. The tellers could focus more on interacting with customers to find out their needs and reel in new real estate and mortgage banking. A human resource professional should...
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...Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. I would recommend that Mountain Bank implement the following competitive strategy for the reasons given: Mountain Bank should follow the differentiation strategy. Mountain Bank should follow this strategy because, “an organization following the differentiation strategy focuses on offering value by providing something better than competitors can-something for which customers are willing to pay a higher price”, (Greg L. Stewart and Kenneth G. Brown, 2009, p.49.) As a small bank competing with larger banks that can afford to offer more products and services for less, Mountain Bank must focus on offering exceptional and personalized customer service. Currently, the bank has small shares of the market in each area of the services it offers with the exception of the retail accounts but those accounts are not profitable. The bank should create and present a plan of profitability to each of those retail account clients as a business partner. This is a level of personalize service that the bank can offer due to its small size and an added valuable resource for its clients. Another reason that Mountain Bank should follow this strategy is because of its small size it can dedicate the necessary resources to its clients to improve their profitability therefore proven its worth for charging higher fees. This hands-on approach establishes an Eastern culture practice...
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...Mountain Bank Yasmin Elbasal Dr. Jama Rand Strategic Human Resource Management January 22, 2012 1-Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. . “A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices” (tutor2u.net) Mountain bank should pay attention to its weakness areas. It has a stable and competitive position in retail banking unlike, the consumer lending, real estate and mortgage banking, and corporate banking lines where it has very weak position in the market. Mountain bank needs to implement differentiation strategy in order to achieve competitive advantage in the market place. When an organization is operating where there are many other organizations offering the same services or products it , therefore it must look for being different and unique by offering new creative products as well as high quality customer service that satisfies different desires and needs . This strategy would recommend the bank to charge premium prices, that would be considered extra charges or higher prices to differentiate their product and give the customer the impression of quality and uniqueness. Customers should see mountain bank as a different bank. Employees should be encouraged to share their ideas and suggestions, as well as tellers who are in direct contact...
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