Ross Abernathy and the Frontier National Bank Essay Example For Students

Ross Abernathy and the Frontier National Bank Essay ROSS ABERNATHY AND THE FRONTIER NATIONAL BANK A CASE STUDY SITUATION ANALYSIS Time Line |Events in Frontier National Bank |Events of Ross | |1939 1955 |Downward trend started, profit market standing declined | | |1955-1970 |Continued with monopolistic business and nation’s best known banks |Joined Chicago Bank | |1970-1977 |3rd place in assets 6th place in profit |-1973 Ross offered Vice Chairman in Chicago bank | | | |-1974 joined Group of insurance companies as CEO | |1977- |-Retirement of CEO (founder) Son in Law will replace him, was |Ross joins as CEO of Frontier National Bank | | |depressing news | | | |-CoC recommended for merger with younger competitor | | | |-Board started searching of new CEO | | | | | | ROSS PROFILE Highly aspirant with leadership qualities, dedicated devoted with high ambitions. Competent having better acquaintance in statistics economics PROBLEM Because of conservative attitude, though employees were technically competent they lack vi sion for performance making bank to loose market share. OPTIONS FIRST – INSIDE TEAM Identifying efficient team from available internal human resource. Positive Aspects |Negative Aspects | |Immediate human resource availability |Motivating team is time consuming outcome delayed | |No prior training required |Will lack competitive edge | |Less Operational Expenses (Salaries) |Operational efficiency will be low due to age factor | |Acceptance amongst bank employee’s |Excess man power | | |Creativity innovations will be limited | | |No new business model | SECOND – MY TEAM Identifying known persons from previous organizations. Positive Aspects |Negative Aspects | |Trustworthy and efficient people |Existing employees not given any opportunity to prove | |Outcome will be better in short time |Moderate Operational Expenses (Salaries) | |Motivation is high |Top management acceptance amongst bank employee’s will be low | |New business models |Time to understand existing organizational culture | |Fairly competitive edge | | |Excellent team coordination | | THIRD– OUTSIDE STRANGERS Identifying persons with prov en performance from various organizations. Positive Aspects |Negative Aspects | |Persons with proven track record in banking |Existing employees not given any opportunity to prove | |Outcome will be immediate |High Operational Expenses (Salaries) | |Self motivating |Top management acceptance amongst bank employee’s will be low | |New business models |Time to understand existing organizational culture | |Excellent competitive edge |Coordination amongst new members will take time | | | | CRITERIA FOR EVALUATION 5– Too Positive 4 – Moderate Positive 3 Neutral 2 – Negative 1 –Too Negative |Criteria for Evaluation |Option 1 |Option 2 |Option – 3 | |Operational Efficiency |1 5 |4 | |Professionalism |1 |4 |5 | |Time to be Profitable |2 |4 |5 | |Competitive Edge |2 |4 |5 | |Adaptability to Change |1 |5 |4 | |Coordination amongst new members |3 |5 |1 | |Opex |3 |2 |1 | |Employee Salaries |5 |2 |1 | |Acceptance among staff |5 |4 |2 | |Encouragin g Environment |3 |4 |5 | |Innovations |3 |4 |5 | |Employee Growth prospectus |5 |4 |3 | |Achieving personal Goals |3 |5 |4 | |New organizational cultures |3 |4 |5 | |Total |40 |56 |50 | RECOMMENDATION OPTION – 2 is recommended Team 4 NEHAL ROY 102127 SOMA SHEKER102144 MEHUL RAVAL KHUSHBU UPADHYAY SACHIN PATEL ARPIT