Situation Analysis and Problem Statement

SITUATION ANALYSIS AND PROBLEM STATEMENT

Abstract

USA World Bank (UWB) is faced with a situation of deciding upon a new product to expand its market share. This paper deals with a scenario in which the ultimate goal is to provide a holistic approach to problem-solving and solution development. In particular, this paper will analyze the first three steps in problem-solving, which include; description of the situation with the emphasis on the issue and opportunity, defining the right problem-based on the situation, and explain the desired future end-state goals.

Situation Analysis and Problem Statement

The banking industry has been impacted by the vast changes in technology. The changes occurring in the banking industry have caused companies to broaden their horizons with new products and services to keep up with the competitive. In particular interest, USA World Bank is faced with having to make better judgments on effective decision-making. Having an understanding of how those decisions are made can be gathered through statistical analysis and effective planning. This requires detailed analysis that facilitates both developing rational expectations regarding the future and the ability to evaluate risks and alternatives (University of Phoenix, 2006, Read Me First, 2).

Situation Background

USA World Bank is a major bank that has a large consumer and small business base. To expand its current market share the executive team realized they needed to develop new products that will be profitable. With the past products being slightly successful they were only aimed on the U.S. consumers and not international. USB needs to submit to the Board of Directors a product that will consume lots of advertising dollars and will ultimately change the bottom line for USA World Bank (University of Phoenix, 2006, Read Me First, 4). Mary Monroe, Vice President of New Product Development and Jim Wilson, the Vice President of Marketing Development presented their products to the executive staff. The executive staff supported both Mary’s Instant Rewards and Brian’s Small Business Cards indicating these products would show growth to both sides of the company. Ultimately, Brian Allen, President of New Product Development chose to present Instant Rewards to the Board of Directors. Although the new product development team has ideas that are strong they were not sufficient enough for the Board to give them seal of approval.

Issue Identification

The focus groups and surveys of both products show they can expand its market share, yet each department is faced with a challenge of proving to the Board the results are adequate. With the newest member to the Board of Directors, Bea Henson, has challenged Brian to re-strategize his research and approach. Bea pointed out to Brian that the huge sample size may be distorting the results. “Without reliable statistics, we don’t know the full scope of the problems and cannot adequately measure the results we actually achieve,” said Shaida Badiee, Director of the World Bank’s Development Data Group, who chaired the panel discussion (The World Bank, 2006). With limited time and capital, USB faces a challenge of successfully launching a new product. The team players are not fully aligned in their goals. UWB is faced with two products that are ready to move in its final stages but the challenges lies in whether or not both or none of the products will be profitable in the future.

Opportunity Identification

USB’s opportunities also coincide with its challenges. The Instants rewards will reduce the customers banking costs and offer substantial discounts on the purchase of products and services. The Small Business Card shows opportunity for USB to expand its market that allows small businesses to purchase capital items and with a credit line of $200,000 rewards available. These products show an increase in customer base and growth of their small business segments. When the survey is done correctly, “surveys can reduce new product and other risk; generate insight about employees, customers, and markets; and align PR, advertising, and other communication programs with target constituencies” (Wreden, 2002, p.3). USA World Bank can continue to grow its business both domestic and international and increase its profits. The opportunity presents itself to strengthen its customer base and begin establishing long-term customer relationships

Stakeholder Perspectives/Ethical Dilemmas

According to the University of Phoenix Read Me First (2004), The President of