Handling Change at Ferguson: Credit Function Essay

One of the driving factors behind Nextcard believing that it could succeed in the credit card industry was it believed that it could cut cost that tradition ‘brick and mortar’ credit card companies could not. During the 1990’s it was believed that the people

I think the strategy is unwise because with the original system, management’s strategy was to increase retail customers rather than business customers, when the ABC system shows that retail customers are not profitable. The bank might try to attract new business customers to increase profit.

The Supreme Court case Plessy v. Ferguson is known for having established the precedent of “separate but equal.” The case originated in Louisiana and was specifically made to the separate passenger cars that were for the black and white races. The Supreme Court, in this case, upheld the right of Louisiana to separate the races and “this decision provided the legal foundation to justify many other actions by state and local governments to socially separate blacks and whites” (Zimmerman, 1997). It was not until the famous Brown v. Board of Education case in 1954 that the highest court in the land outlawed the principal of segregation and the concept of “separate but equal.”

The Royal Bank of Canada using CRM and customer profitability tools to gain a competitive advantage in Canada's increasingly crowded financial services market.

The issues arising from such a system is the amount of data collected, the operational system in place gathering the data and the quality of that data. For example, in order to precisely identify costs related to a customer the bank should use the activity-based costing methodology, that will assign the costs of all activities of the customer towards the bank (products and services) and assign those costs to the actual consumption of each product and service. Such measurable data could be the income derived from interest paid on outstanding credit balances and loans, the fees paid by the customer, the risk score and the bank’s overhead towards the customer. In order to assess this data – usually they are suppressed in a computerized system that no one can use entirely – one should identify the specific measurable parameters. The bank will have to allocate resources for this task but it will pay off eventually. The data inputs will lead to product / service level metrics and will help the bank assess the profitability of each

Richard Fairbank and Nigel Morris, both diligent entrepreneurs, started laying the bricks for their eventual successful company, Capital One, in the late 1980’s. They both worked in the Virginia-based “Signet Bank”. Fairbank started noticing trends in the financial industry that he felt Signet was missing out on. These opportunities were in the credit card industry. He, as well as all of Signet Bank knew that the credit card industry was very risky, but Fairbank was ready to take a chance in this, what can be, highly profitable field.

Information-based strategy (IBS) allowed Capital One to achieved competitive advantages in credit card industry. And it is mainly relied on information and data gathered. The following discussed the consequences for expansion into different segments of the credit card industry.

In this case study, Vancity’s CEO, Vrooman, is faced with making the tough decision of deciding if her organization is in a position to reprice its line of credit offerings, in order to stay afloat and competitive, and at the same time, not loose the trust of its customers, who also happens to be the owners. Furthermore, the study showcases how Vancity’s innovative value to adapt to the changing needs in their community gives them a competitive advantage amongst other financial institution. This case is important as it explains tough decisions that top executives and organizations as a whole, are often faced with making, in order to stay competitive and profitable. It also discusses the financial impacts of the recession in the late 2000s on the Canadian economy, particularly the financial industry. This paper will begin with an introduction to this case, discussing the financial industry, and its impact on the Canadian economy, also to be accompanied with some background information on the case study. This will be followed with an analysis of the case study and I will then determine possible decisions that could be taken, and the merits/drawbacks of each decision. At this point, I will elaborate on what decision I think would be ideal and provide the best outcome of benefitting both the organization and its customers.

Changes in strategy are inevitable as the Department’s goals and objectives alter to meet the demands of

In this case assignment the credit union Affinity Plus, which is based in Minnesota, will be examined. As they implemented a new control system, focusing primarily on customer needs, they forgo classical principals as authorization processes and limitations for employees. In the following assessment we will evaluate Affinity’s

Case Analysis: Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, specifically to Carle, he needs to come up with a program from which, Alpen bank can generate at least €5 million in profit within 2 years. Moreover, clarified positioning strategy and customer segmentation is also needed to secure the success of the program. In the case, it seemed that Alpen had the opportunity to act since economic environment in Romania had changed from 2006 after its entering into the EU: the economy there was developing; a

The company transformation from private equity ownership with an immediate shift of CEO marked new challenges for the company. The company has been going through rigorous changes to keep up with the strong

In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.

Today in the global business world we know that strategic changes are fundamental in order to

Obstacle is the relationship to the customers or potential customers. There more levels that are important to obtain, if company would like to change the condition of credit lines or discounts for the customer: - economic difficulties may prevent the borrower from repaying the account or having a reduction in credit. Companies often rely upon their accounts payable. - Attempts to reduce the balance could severely weaken an existing business relationship with the customer. - Improvements in record-keeping and customer-communications systems may