Bank

It is very important that a careful and thought-studied plans are well established so that decision making for choosing the best alternatives are achieved. In the case of the Rural Bank of Suares where business are carried-out with the stockholders' approval prior to any transaction, all assumptions and alternatives must be considered and that the group of decision makers to come into a consensus. Generally, the stockholders' decisions are based on broader perspective that takes into consideration the internal and external environmental influences and this factors are then aligned with the company's mission and goal.

I. Personal Perspective

Should Rural Bank of Suares open a new branch in the capital city?

How should the stockholders decide on the general manager's proposal for expansion?

III. PROBLEM STATEMENT

C. Rent a small office/satellite office in the City and Hire a Sales Representative who will transact with the customers.

ALTERNATIVES (cont.)

MARKETING: Population in the capital city is more than 10 times than that of Suarez, since it is the financial and commercial center thus market for loans and deposits would be larger plus they can offer better service than the existing competitors. 

HUMAN RESOURCES: Additional employment chances for various positions required for the new branch. 

FINANCE: For additional capital to acquire a new branch, they can lend from larger commercial banks not directly their competitors. 

OPPORTUNITIES

B. Rent a building for a complete branch bank operation expansion.

ALTERNATIVES (cont.)

RECOMMENDATION (cont.)

RECOMMENDATION (cont.)

Recommendation

MARKETING: If they continue with the expansion in the city, they have limited diversity of their investment portfolio.

HUMAN RESOURCES: They would need to hire additional staff to assist the operations however efficiency is not guaranteed as it would either be a fresh graduate or they would be forced to pay high salary to experienced staff. 

FINANCE:...