A Case Analysis on Banco Santiago

Problem Identification

* Banco Santiago is failed to incorporate its cost with its revenue. So the inefficient cost management less profit. As a result the lack of profitability discourages investor to invest in the business.

* The company is unable to maintain the balance in it’s capital structure. The huge amount of liabilities specially the long term debt increases the cost of fund as well as the probability of being bank corrupt.

* BS failed to incorporate its customers with it’s new marketing strategy. Many customers did not understand the structure of this new system. And besides this many customers resisted change because they had already built strong relationships with their previous account representatives

* A major concern in the effectiveness of presenting the new plans to customers stemmed from the tendency of account representatives to not offer all the products because they did not want to fill out the paperwork. This creates the dissatisfaction to the customer as well as loosening them.

* Besides the customers’ dissatisfaction account representatives also had complain that the number of clients was too large for them to be able to offer the level of service that they wanted to .So the quality of services provided by the account representatives decline.

* There is a lacking of marketing the new strategy .Which makes the customer value strategy of Banco Santiago unsuccessful.

* Because of inefficient communication system the account representatives did not get proper support from the other bank division. As a result the service provided by the account representatives was not up to the mark.

* In regard of customer interface, the bank had to change from a system of standard branches and account representatives who served the whole spectrum of customers, to a system with individual branches and representatives specialized in specific types of market segment and account. This made the clients to believe that the bank was...