2. Problem
Key Issues
The location of the bank in St James’s square is both a blessing and a burden to the organisation. The sophisticated clientele resulted in the bank being the most profitable in its region, yet they also expected an extremely high level of customer service. This high level of expectation from the customers resulted in any lapses in service being highly scrutinised.
The key issues to be addressed within this branch occur in or around the process of opening accounts which is the responsibility of the Records Section, they are as follows:
- Customers joining the wrong queue and requiring redirection because the enquiries desk was “neither well positioned or signposted”.
- Competition is “tough” within the banking industry, particularly in this branch’s immediate vicinity.
- 36 per cent of customers felt formalities were not properly explained.
- 76 per cent had not received the standard account pack.
- 44 per cent waited 10 to 14 days for their chequebook and card and 25 per cent 15 days or more (maximum waiting time stated as 10 days).
- 24 per cent would not recommend the branch to others.
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24 per cent found the opening procedure unsatisfactory.
- The Records Section was considered by staff to have a higher workload than other sections resulting in low morale and the consistent need to work overtime.
- Pressure of work is considered to be high and erratic possibly resulting in mistakes to the detriment of the customers and the rest of the organisation.
- Records Section staff were required to cover cashiers during the busy lunch period which is also their busiest period.
Consequences
As stated above, in an industry with many competitors offering very similar products, any competitive advantage is greatly beneficial. Therefore the problems with customer service may ultimately result in a reduction of market share. A competitive advantage can be provided by efficient performance at the five competitive objectives: Quality, Speed, Dependability, Flexibility and Cost. The branch is currently under performing in the following;
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Quality: 19 per cent of customers surveyed found that personal details had been wrongly recorded, acknowledged as the most important of the customer's requirements.
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Speed: Long queues and unclear signposting during the busy periods resulted in slow service.
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Dependability: 69 per cent received their chequebook and card outside the requisite 10 day waiting period.
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Flexibility: Strict following of the standard form enables reduced interview time but the customer may feel they are "on a production line".
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Cost: Productivity is suffering as a result of the key issues listed above.
When the five competitive objectives are improved upon they each have an advantageous effect on each factor in turn and adversely, failure in any one of the objectives will be detrimental on the others. For example; if the Records Section is unable to get personal details right (quality) then procedures will not be carried out on time (dependability) and the speed of operations will be affected. The reduction of operational speed will result in less flexibility in the service which the bank is able to offer, as a result of time constraints Records Section staff will be required to work overtime to the detriment of productivity and ultimately cost.
Without a clear operational process then the problems listed above will remain to be issues. The process of opening accounts, which is vitally important as it is the customer's first impression of the organisation, does not have a clear and concise transformation process and therefore the output of the Records Section will be fundamentally flawed.
3. Review
Organisation’s Position
The current position of the St James's Square branch of the National Westminster Bank is strong in terms of profitability, however from an operations point of view many issues are in need of resolving within the Records Section
4. Conclusion
Draws the argument together.
Forms the justification for the recommendations that you eventually present to the reader.
5. Recommendations
Clear statement as to which alternative to follow.
Acknowledges drawbacks/problems with the choice – advises how such drawbacks can be dealt with.
This section sells the report so it must be explicitly clear. It also follows logically from the previous analysis and so should not contain any ‘new surprises’ or indeed fresh analysis.
- Bibliography
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Gerry Johnson & Kevan Scholes (2002) Exploring Corporate Strategy Sixth Edition. London: Prentice Hall.
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Henry Mintzberg, James Brian Quinn, & Sumantra Ghoshal (1995) The Strategy Process: European Edition London: Prentice-Hall
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- news.bbc.co.uk/1/hi/business
Appendices
Should only be relevant to the report and must not be used as an ‘overflow’ section if the word limit has been breached (note, this section does not count in the word limit). Often this section of a report is not read, so do not hide valuable information here and expect the reader to find it! It is the responsibility of the report writer to bring all the key issues and information clearly to the attention of the reader.
For the purpose of the assignment it must include a bibliography showing clearly the source of your information.
Statistics derived from a survey the branch carried out in 1989 on customers views of their account opening procedures.