National Mutual Funds: Retail Services Division Essay

1324 WordsJul 15, 20126 Pages
I. Problem National Mutual Funds (NMF), founded in the 1940s, is one of the most important mutual fund companies in the brokerage industry in the United States. The company has extended from a mutual fund company to a financial center offering mutual funds, brokerage products including stocks and bonds, insurance products, and a variety of planning tools to help customers save for major life needs. However, since the market downturn, which is hurting many brokerage and mutual fund houses, NMF’s profits and operations have been affected significantly. To respond to the market slowdown, Harry Smallwood, President of NMF Retail Services, has come up with a directive to reorganize the call centers in the Retail Services Division in an effort…show more content…
This alternative does not need traders to intervene in sales representatives’ jobs but the company has to make sure that both departments are able to identify prospective customers and make existing customers still trust in the company’s performance. Pros: - There will not be conflicts between the two departments due to no change in their responsibilities - No training program is needed Cons: - This method is short term oriented and in conflict with the company’s intention to focus on investing in the company’s future - Laying off some people can discourage the rest of them and it will probably result in decreasing revenue - Firing people does not guarantee that the company will gain more profit if the reorganization is not implemented IV. Recommendations I would recommend Alternative a) because in order to handle the market downturn, which is likely to continue for a period of time, the company has to focus on the method that works in the long term. The collaboration between traders and sales representatives can help the company survive through the market slowdown by focusing on generating more revenue through new customers, and more contacting and making transactions with existing customers. Additionally, even though the cost of training traders is high, it will be offset by increasing revenue in the future. Moreover, working as a team will encourage a smooth handoff of the selling process
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