Submitted by: Submitted by mambouitm
Views: 464
Words: 1655
Pages: 7
Category: Business and Industry
Date Submitted: 11/07/2011 03:50 AM
BankUSA : CREDIT CARD DIVISON.
Bank USA operates in 20 states and provides a full range of financial services for individuals and business. The credit card division is a profit center and has experienced a 20 percent annual growth rate over the last 5 years. The credit card division processes two types of credit (bank) cards. One type is for traditional card issuers such as savings and loan banks, credit unions, small banks without credit card processing capability, selected private-label firms such as a retail chain, and BankUSA’s own credit cards. This “individual customer” market segment involves about 15,000,000 cardholders. These credit card services include producing and mailing the plastic credit cards to customers, preparing and mailing monthly statements to customers, handling all customer requests such as stop payments and customer complaints, and preparation and distribution of summary reports to all internal and external customers.
The second major category of credit card customers includes major brokers and corporation such as IBM, Dean Witter State Farm Insurance, and Merrill Lynch. These corporate customers use all the services of traditional card issuers but also usually have electronic access to their account files and desired a cash management type service. Although there less than 3,000,000 cards issued, the dollar volume of transactions processed is about equal to the traditional individual card issuers.
“Our internal operational measures seem to be good,”Juanita Sutherland, the president of BankUSA’s Credit Card Division, stated, “but the customer perceives our performance as poor based on marketing’s recent customer survey. So, what’s going on here? Can anyone at this meeting explain to me this mismatch between these two different sources of information? Is if an important problem or not?”
H.C.Morris, the vice president of operations, quickly responded, “Juanita, one reason there’s a mismatch is that operation doesn’t have a say in...