Usa World Bank Situation Background

Situation Background

USA World Bank (UWB) is a major, successful bank well known for it's domestic and international presence. They have branch locations nationwide and contain a large consumer and small business base clientele. In order to continue to expand it's market share, UWB feels the need to develop profitable new products (Scenario One, USA World Bank, n.d.). The bank is now faced with a situation where they are expected to select a new product to launch. They have come up with two alternatives: a credit card with an incentives program for the consumers, and a small business owner credit card with a $200,000 limit that is easily accessible and has rewards incentives. Both alternatives used different methods to survey what customers really want from a business. Based on the results, the consumer alternative appeared to be the favorite of the president of UWB until a statistics specialist informed him that the method used to collect the data might not be representative.

Discussion

Issue Identification

USA World Bank is facing several issues while trying to select a new product. It is important for them to formulate the best methodology that they could use to determine the next development opportunity (Read Me First, Scenario One Ð'- USA World Bank, n.d.). UWB is faced with an issue to select a product with limited data and information and determining what to use to collect the data. They also have to choose where significant resources will be applied amongst leaders who are not in agreement. Also, there is no guarantee that either of the products is as profitable as promised. Though the small business owner survey results were not shown to the statistics expert, it is already predetermined that problems will be found with it. The president of UWB is confident that both alternatives will be an asset to the company. Unfortunately, UWB is now faced with the dilemma of collecting enough data to support both of the alternatives and finding a way to convince the Board of Directors that launching more than one product a year can be beneficial (Read Me First, Scenario One Ð'- USA World Bank, n.d.).

Opportunity Identification

Although many issues have been found while trying to create a new product to launch, there are also some opportunities that lie within. UWB has the opportunity to use the data they have collected to distinguish between what is known and unknown and to decide how best to use that information (Read Me First, Scenario One Ð'- USA World Bank, n.d.). They also have the opportunity to utilize the information they are gathering from the statistics specialist to gain more insight on how they should go about with their data collection in the future. If all goes well with convincing the Board of Directors to allow UWB to introduce more than one product per year, they will have set a new precedent in the way the company attempts to generate revenue.

Problem Definition

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