Mountain Bank Case Study
In order to achieve competitive advantage, Mountain Bank needs to work on its existing four lines of business instead of expanding into any new area. This is because if it concentrates on the currently served markets, it will find room for improvement that would help the bank gain competitive advantage without eroding its profits or using its financial resources.
The one most important strategy that it must adopt is to improve its deposit volume. We learn from the case study that Mountain bank doesn't find checking accounts very profitable but we know that they can be turned into highly stable source of income if correct strategies are implemented and deposit growth is one such strategy. (Zagha et al. 2005, p. 206)
For one if the company gives its customers some incentives for using their checking accounts for direct deposits, this would make Mountain Bank their primary bank which in itself can turn out to be a highly favorable change for the bank
Second, with direct deposit customers, the bank can enjoy the benefits of cross-selling
There is very volatility rate with direct deposits and they are highly stable source of income
The company needs to attract its customers with attractive offers that may include:
Reduction or waiver of maintenance fee if checking accounts are used for DD
Reduction or waiver of fees if debit cards are used more frequently
More attractive credit offers focusing on niche markets like small businesses and underserved ethnic groups
ANSWER 2
Tellers are employees and hence...
First the bank must understand that it cannot discriminate on the basis of race, color, religion or gender. It can become a more attractive place for employment if there is a competitive compensative package. Tellers would find themselves more motivated if they know that they are being paid just as well as any other teller working in any other commercial bank. This kind of knowledge helps in keeping the team motivated.
Second, there should be a good bonus plan too. Bonus works as an additional motivation factor and tellers would feel more focused if they know their efforts will pay off. There should be a good system in place to check who is performing at their peak, who is the most courteous with customers and who is going beyond the call of duty.
It would also help if age or physical disability is ignored as long as performance is good. We must understand that there are some marginalized populations that if treated properly can make any organization stand out from its competitors. This strategy can be used to keep the entire team happy, focused, and loyal.
ANSWER 3
Internal cost refers to the costs incurred by an organization internally on basically running the business efficiently. Mountain bank can conduct an internal cost review to see if there are ways in which it can remove excess costs. One area could be internal overheads like use of energy resources at various locations. Bank often consumer more energy than most other small organizations because they need to keep the area well lit…
