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Problem Solution: USA World Bank
USA World Bank (UWB) is a major bank with domestic and international presence. UWB has several banks that are located nationwide and enjoy a large consumer and small business base clientele. UBW also have been very successful in several worldwide ventures and feel the need to develop some new products that will be profitable and will help the company to continue expanding in its market shares (University of Phoenix). UWB has been impacted by the vast changes in the economy and in technology. UWB will continue to expand their market shares by creating a well-develop strategic plan for new products. The plan must identify important variables related to the project, and specify how they are to be measured. UMB must ensure that the products respond to the needs of all of their customers. UWB leadership must be strong and knowledgeable to analyze available statistical data. UWB must identify the present issues, opportunities; assess the risk, and alternatives.
Describe the Situation
Issue and Opportunity Identification
In order for UWB to secure a large portion of the market share, the company must continuously compete in the industry by developing new products and marketing them. Brian Allen has had some winning products on the market, but not recently (University Of Phoenix, 2006). UWB should analysis data by using descriptive statistics.
A new credit card with rewards could move people to switch from their current banks to UWB. Small business owners like to have the opportunity to purchase capital items at their request. UWB could face losing at lease 40% of their customers. This problem statement gives opportunities to UWB to do a research and collect data on how other banks operate.
Stakeholder Perspectives/Ethical Dilemmas
Stakeholders are employees, customers, suppliers, regulators, investors, financial analysts, lenders, and, finally, the public and the communities where operations occur. Each stakeholder group has a different perspective on risks, possible outcomes, and desired responses (Kloman, 2003). The Board of Directors will review the statistical data thoroughly, because they have limited UWB to only new product per year. This decision has caused a split in the company’s decision to go with the small business credit or the consumer’s credit card. Some of the Executive staff members (Mary and Jim) ideas are different, Mary favors the consumer and Jim favor the small businesses. The Executive staff must supply accurate statistical data for the ideas. They need to convince the Board to allow both of the new products for the next year. The customers want both, if the one new product that the customers are requesting not selected, they may consider switching to another bank.
Frame the “Right” Problem
UWB needs to identify a company-wide approach to develop a profitable new product that will incorporate the consumer and the small business markets domestically and worldwide. The bank is faced with a situation where they must select a new product to launch. They have two alternatives. The survey that Best Research Market firm conducted can lead to bad decisions that can be both embarrassing and costly. Decision made on bad research also happens in private industry (University of Phoenix, 2006). The sample size should be large enough to produce accurate date and small enough so money is not wasted on the research. USB will successfully launch at lease one of the alternatives, a small business owner credit card with a $200,000 limits that is easily accessible or a credit card with an incentives program for the consumers. Brian Allen had considered the consumers credit card alternative until Bea Hansen, a statistic specialist informed him that the data that was collected from the survey may not be representative.
Describe the “End-State” Vision
UWB need to identify a company-wide approach to develop profitable new products that will incorporates the consumer and small business owners worldwide. The market research for the new product will successfully represent both the consumer and the small business owners. The identification of the appropriate statistical tools need for accurate assessment will improve the idea selection process. An appropriate sample needs to be chosen base on the level of confidence desired.
Identify the Alternatives and Benchmarking Validation
A benchmarking study shows that instant rewards just got better for Royal Bank Visa Classic II cardholders with the addition of three new retail partners. The Royal Bank Visa Classic II card was the first credit card with rewards from multiple retail partners to be launched in Canada in 1996 (Canada NewsWire, 2003). This card has become one of the most successful credit cards available among banks in Canada with a rewards programs and instant savings. Cardholders who accumulate 2,500 points or more through spending on their Visa Classic II card have the opportunity to trade points for gift certificates redeemable at more than 340 Bay and Zellers stores and for Famous Players movie packages across the country. Royal Bank's Visa Classic II program, introduced in 1996, was one of the first card loyalty programs to really put money back in the pockets of Canadians (Canada NewsWire, 2003). It has lived up to its promise by giving back more than $20 million in gift certificates to cardholders," said Rod Pike, vice president, retail credit cards for Royal Bank. "With the addition of leading Canadian retailers the Bay, Zellers and Famous Players movie theatres, plus our existing partners Home Hardware and RadioShack, our cardholders have more choice than ever on where to spend their rewards" (Canada NewsWire, 2003). UWB can use the same system Royal Bank used to increase profitability.
Evaluate the Alternatives
UWB should present their research and a discussion of the conditions and trends within the industry about the two new products. UWB should review the market for the new product and the demand for it. Describe how many major competitors UWB have, how much of the market each of their competitors controls, and their strategy for gaining a share of the market or developing a new position. UWB should be able to explain any barriers to entry into new markets they are considering and how you plan to overcome them.
Narrowed List of Alternatives * UWB can launch a new product, a small business owner’s credit card with a limit of $ 200.000. * UWB can launch a new product, a consumer’s credit with rewards. * Continue to do business as is * UWB should review the market for the new product and the demand for it.
Identify and Assess Risks
UWB needs a combination of both tools so that they can deliver sensible and practical assessments of their risks to their stakeholders. Understanding uncertainty isn't enough. The process must deliver tangible results to critical stakeholders. UWB cannot deal with risk abstractly; they must relate their work to the overall goals. UWB needs a balance that produces the optimal blend of rewards and losses of the new product. A successful risk assessment effort for UWB depends on accurate information collected into econometric models that provide guidance for decision-making.
Make the Decision
UWB is going to launch both products for the next year. By partnering with other companies, UWB can instill business discipline, open doors, and enhance the research and development of the new product.
Develop and Implement the Solution
As UWB project team is waiting for the approval for the two new products from the Board of Directors, Jim Wilson will supply Brian with the survey data from the focus group in one week. Brian will submit a copy of the market analysis that incorporates the items that Bea brought up in the Executive Board meeting by the end of the day. Best Market Research must conduct a focus group for the small business owners and present it to Mary Monroe. Mary and Jin has one week to collect information from colleagues about how other companies in and out of banking come up with new products. Jim and Mary also has one week to set up a focus group for the consumers.
Evaluate the Results
UWB will make sure that the cards do what it are needs to do in order to help their customers businesses run smoothly. The cards will provide an APR that the customers can live with and will it be accepted everywhere their sales force travels. It will earn points or discounts on those goods and services the business uses most.
Conclusion
Business professionals need a statistical toolkit. Statistical skills enable you to intelligently collect, analyze and interpret data relevant to their decision-making. Statistical concepts enable us to solve problems in a diversity of contexts. Statistical thinking enables you to add substance to your decisions. Although small business credit cards aren't considered capital, they can be a tremendous help in the run the business. Establishing business credit is difficult but with a little basic knowledge business owners can enjoy many benefits of financial freedom and will help UWB become more profitable.

References
Canada NewsWire, (2003). Royal Bank Visa Classic. Retrieved October 29, 2006 from ProQuest database.
Kloman, H. (2003). Current Views On Risk Management. Retrieved October 30, 2006 from Internet from: http://www.riskreport.com/reskassessment. Lind, D., Marchal, W., & Wathen, S. (2004). Statistical Techniques in Business and Economics, 12th Ed. New York: The McGraw-Hill Companies.
University of Phoenix. (2006). USA World Bank Scenario, MBA/510

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