Wingspan bank Essay Example | Topics and Well Written Essays - 1250 words

Wingspan bank - Essay Example Bank One is one of the biggest traditional banks in the US. They launched WingspanBank.com on 1999 in order to cater to tech-savvy Internet customers, in the hope of expanding their market size and operation. Wingspan was aggressive in strategies in order to become a leader in the virtual banking.The company implemented and launched innovative strategies to gain competitive advantage. However, by 2000, the new company was in trouble of closing shop.This paper aims to identify the key issues and problems that caused the failure of WingspanBank.com amidst the successful launch in 1999. The paper also enumerates several corporate strategic solutions that addresses the issues and answers the problems identified. With emphasis on market expansion and business growth, the alternative solutions were evaluated and the best strategy was chosen as a recommended approach to beat the issues.WingspanBank.com is an internet-only banking institution. It is under the umbrella of the parent company, Bank One, particularly in its subsidiary First USA. It was launched on 1999 with good reviews. It has garnered several awards for its internet-only operations after its launching. However, the virtual bank was treading on troubled water by 2000. Several issues contributed to the downfall of the bank.First, the Bank's expected success was highly dependent on the financial cover of First USA. When First USA was troubled and was under scrutiny from its customers, the financial support was brought to a standstill. Without the money poured into the initial operations and its aggressive marketing strategies, WingspanBank.com was in danger of a collapse. Second, the expectations of the mother company on the internet bank were high. Bank One anticipated high growth rate on Wingspan's customer base as more and more people were hooked on the Internet. They invested millions in aggressive marketing and advertising initiatives to capture the market. When the expected growth was not achieved, Bank One has become skeptic on the performance of the new company and has doubted its future as a potential contributor to the corporation. Lastly, the internet-only banking industry has become unattractive to customers. People were complaining on its operations, security and customer service. Sites were difficult to use. Human interaction, which was essential in the traditional banking, was lacking if not missing. Marketwise, the growth of online banking customers was only 2%. With all these issues facing WingspanBank.com, Bank One top executives were weighing the pros and cons of discontinuing the operations of the virtual bank, due to its poor performance and failure to achieve expected growth. Alternative Strategic Approach Bank One can opt to implement several corporate strategies to address the issues and problems facing Wingspan Bank. First, they can decide to sell the internet-only bank as a whole or pieces of the organization. Selling the company is a good option if buyers are willing to acquire it. Unfortunately, the bank is not attractive for buyers because it has no desirable assets aside from its Internet technology and infrastructure. Because the bank is still in its initial stage of operation, its brand name is not so much attractive to buyers. The brand name is yet to be embraced by consumers and become a part of the industry vernacular. Second, they can choose to merge it with Bank One's existing Internet bank brand. Merging WingspanBank.co

Difficulties of HR in managing multicultural workforce Essay

Difficulties of HR in managing multicultural workforce - Essay Example Team cohesiveness and task identity were predictors of collaborative problem solving and productivity for R & D teams (Dailey, 1978). Cooperation and collaboration is essential for team success.† Paraphrasing The author suggests that the negative aspects of a culturally diverse team can be reduced by ensuring that team members are not frequently changed. If team members stay together for an elongated period of time then they begin to understand each others’ style of working and know what to expect from the other individual. Team members tend to start cooperating with each other (irrespective of their cultural differences) if they stay together in the same team. The authors stated that team cooperation and collaboration are important elements for any team’s success. Commentary This paragraph is important for the chosen research topic as it highlights an important technique that can be useful to make teams more productive and successful. Many organizations do not fo llow this approach and have no awareness about the importance of keeping team members in the same team structure. This approach can reduce many difficulties for the HR department since instances of lack of coordination between team members can be significantly reduced with this approach. Source: Tilker, Lutz. â€Å"Managing diversity†, SpencerStuart, 2004. ... Diversity management helps to recruit and retain staff because companies take account of the different circumstances of current and potential employees. It strengthens innovation because diversity produces more creativity. And it improves the corporate image because diversity reflects important social values. Paraphrasing The author explains that effective cultural diversity management can prove to increase revenues and corporate value for the company. The improvement in business is due to the provision of better customer service and meeting their requirements in a fitting manner. The author quoted a research of another researcher, who stated that companies with better diversity management techniques are known to be more successful. Such companies are able to understand the problems of existing and new employees therefore they are able to retain more employees than other companies. The author also agreed that diversity promotes creativity in the business processes of the organization and it also helps to attain a positive image for the company. Commentary This paragraph is important for the research since it points out the benefits of embracing multicultural workforces in organizations. Some of the appealing benefits are increased profits, better image of the company and promotion of creativity. This research finding will support the benefits in the research study. Source: Chartered Institute of Personnel and development, â€Å"Managing diversity measuring success†, Change Agenda, 2005. For a multinational corporation, having workforce diversity may help it to be better at dealing with the diverse cultures it operates in and to design and implement strategies to improve market penetration and product differentiation through greater