Discussion Case: Mountain Bank

1590 Words May 25th, 2011 7 Pages
Business Strategy – Discussion Case: Mountain Bank
Strayer University
Strategic Human Resource Management – HRM 530
April 24, 2011
Grade Received: 220/240

Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace.

At first glance, one would wonder why Mountain bank currently has fifty percent of Retail accounts within the market which are the less profitable accounts in the banking industry. Secondly one would also ask or wonder why Mountain Bank has less than 10 percent of the most profitable accounts in the market, corporate accounts. To achieve a competitive advantage Mountain Bank should implement the cost leadership strategy and the differentiation strategy.
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The employer focuses on satisfying the needs of the employees while the employees work complete their various task in a manner in which to reduce cost for the employer. This is a win-win situation in which employees and employer are both satisfied. Employee satisfaction in turn reduces the likelihood of employee turnover. Mountain Bank would need to implement this strategy to ensure that not only its employees but its frontline employees, the tellers, are satisfied with their job. If they are satisfied then they have a higher chance of building a stronger bond becoming loyal longtime employees which reduces the cost to Mountain Bank in the long run.

The Internal Differentiation strategy focuses on hiring and retaining long term employees that specialize in performing certain task with a combination of differentiation. This strategy emphasizes the importance of the employees. It values the employees and provides training to enhance their career within the company. This strategy compensates the employees with high wages/salaries and good benefits packages for their hard work and dedication for the company. These employees are known as the experts within the field.

The External Cost strategy also known as the bargain labor strategy focuses on hiring employees with a short term goal while reducing the cost. This strategy unlike the

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