Communication via Blog

This blog is an interesting method to communicate with each other on the topic of that class. Some of the scenario and cases which I really have not read and heard about it. Through the blog I broaden the way to see things by reading other classmates' blog entries and I found that I did not thing deeply enough on some topics especailly some companies' strategic movements.
So I think the blod should be keep as an element of this class.

I also found that all the topics we discuss in the blog are very important and very helpful in order to do the analysis of the industry for our presentation. However, the timing is not fit to the run down of the class. I suggest is it possible to finish all the blog entries before presentation. In addition, if Professor can talk about each topic before we do the blog entry is more helpful for us.

The last point we can freely express our point of view in the blog. It is good for those, like me, seldom talk in the class. It provides another channel to express their ideas and comment on some issue.

So, I think the blog is good.

Diagnosing Strategic Problem

During the past six years, there is a bank that had emerged in New York City. It's name is called Commerce Bank. The bank is growing fast. They open branches in the 5 boroughs in a incredible speed. Their customer service is the number one in the industry. But last month, they announced that they are bought by a Canadian bank, TD NorthBank at a very lower price: $42 per share. And an article in the Wall Street Journal commented that Commercial Bank is not in a good position to negotiate with TD NorthBank in this transaction. So, Commerce Bank might not as strong as her growing rate of number of branches. As a Commercial Bank staff for almost 3 years, although I do not know the whole picture of the bank, but I can spot some strategic problems of Commerce Bank.

Firstly, the bank products perceived as relatively substandard. Bank products can be generally divided into consumer loan products, such as credit card, personal loans or mortagages. The second category is depository products such as, money market, CD and savings and checking account. Commerce Bank claimed herself is very conservative in loan approval. They require customer to have an above average credit ranking in order to consider their application. Therefore, the number of approved cases is less than other banks. However, the interest earn from loan to customers is one of the major income to the bank. Moreover, the interest rates offered to depository account clients is also not competitive than other major banks. The outcome is customer switch to other banks and Commerce Bank is not competitive. The marketing team of the bank strongly believe that best customer service can retain customers with the bank, But they ignore that the now a day more important to interest-sentitive cusotmers is the money they earn from their money deposit in the bank.

Secondly, the high employee turnover rate is also a problem to the bank. Commerce Bank business hour is from 7:30am to 8:00pm. Employee are required to work 3 differents shifts rotatingly. However, there is no shift allowance and also the wages are comparatively low in the industry. All together, it is hard for the bank to retain staff and makes them loyal to the bank. Futhermore, the bank heavily rely on part time employee heavily is a problem too. Their loyalty is less than full time employee in general. Commerce Bank needs to hire and train staff in a regular basis due to the high turnover rate. A lot of money and time spend on this process. But I cannot see any remedy to this situation.

Although top management forces every staff in Commerce Bank to provide number one customer services to every customer, however the position of the bank in the banking industry is not strong in term of products and staff morale.

Managing Strategic Business Policy

I would like to talk about Weight Watchers (WW)for this topic because over-weight is my problem since I was a teenager and I have been trying so many methods to loose some pounds. Some ways are effective but some ways are cheating people. But self-discipline is the most important thing that one should have plus a healthy eating habit in order to loose weights. WW introducing the right way, points system, clients meeting online blogs system and member to member consultation, to help over-weight clients to achieve their goals.

But how many people have that kind of self discipline? That is the main element that threaten the suceed of WW. The probability of clients having no self-discipline is 70%. Luckily, today people are increasing awareness of the importance of healthy food consumption. WW can increase the education to the public and the existing memebers how to eat correctly. Some of the tactics may be advistisement in magazine, publising articles, sponsoring some TV programs which are related to eating and health. The aim is to link WW to the healthy eating habit that leads to lose weight effect.

The second is the rise of technologies. Liposuction is the symbol of the weight lose because of the rise of technology. Now people in genetic field are studying on a new kind of semi-artificial protein to inject to human body in order to increase the metabolism to burn fat. This kind of product will come out around 10 years later. The probability of this kind of threat is 100%. So, WW is should point out to their clients to know the bad side-effect of that kind of method. Such as liposuction: the high risk of bacteria infection due to the equipement contamination; scares left on the body ect., Moreover, some of the this methods has no data to tell the harmful effect to human body since some of those methods are too new.

The third kind of threat is the weight lost supplements. This kind of product is popular for a long long time and it will continuse their popularity in the future. The probability is 100%. This kind of products are target at those consumer with low self-displine and those want fast result. So, businessmen use some ingredients that can really help to lose weights but hazardous to human body in order to boost sales. WW should education public that there is no fast tracks to lose weight but only the WW way is the right way.

In order to grap more clients to WW, the first thing to do is to educate consumer. It can be done by advrtisement, free meeting, promote with health clinic and gym house and so on.