Organizations' strategies Assignment Example | Topics and Well Written Essays - 1000 words

Organizations' strategies - Assignment Example This paper presents a case study exploration of the elements of real organizational change interventions based on the context of the six key qualities of a good leader. It provides an analysis of how leadership and management can influence the occurrence of â€Å"resistance to change† through creating authentic and open lines of communication within today’s complex organizations (Gardner, 2006). The case study focuses on today’s aggressive banking industry, exploring the leadership competencies Main Street Bank has demonstrated in its efforts to remain prosperous in a volatile and continually changing external environment. While customers are constantly reevaluating how to handle the economic challenges and opportunities in their lives, banks are evaluating new ways they can provide better support and services for their customers and communities. This situation has created a necessity to think about reorganizing the organizations’ structure and assess the need to effect changes in strategies and design approaches. This paper explores the steps followed at each level by organizations to implement these changes to address customer concerns effectively and preserve vision while keeping an excellent relationship with followers. Main Street Bank asked thousands of their customers what they wanted in a bank account. The answer was, â€Å"Simplicity† through open and transparent rules, accounts with no surprises or unreasonable fees, and products in which they understand the true value. This prompted the institution to make changes by giving its customers a review that shifts their thoughts using real changes that influence their thinking. (Kotter & Cohen, 2002). In this scenario, the bank was able to maintain consistency with its vision, pay attention to customers and employees, admit mistakes, and make suitable decisions while displaying a good understanding of the business and integrity. The bank demonstrated both ability to liste n to customers by conducting a research in which they presented their customers with several sets of product choices, with different combinations of features, benefits, price points, and ways to earn out of fees. The findings of the research indicated that customers do not need a long list of account benefits alone; instead they want straightforward account features where they see the true value, such as identity theft protection. Main Street Bank also found out that customers are willing to pay for the convenience of banking with a bank offering online bill payment, mobile banking and an extensive ATM and branch network. Customers preferred a single up-front monthly fee rather than separate per-usage fees and wanted the ability to earn out of fees in various ways. The input from the customers was able to show â€Å"others the need for change with a compelling object that they can actually see, touch, and feel† (Kotter & Cohen, 2002). The decisive quality of a good leader is display by Main Street Bank through the decisions it took to address customer needs. First, the bank decided to simplify the fee structure by eliminating the daily overdraft fees and â€Å"per-transaction† fees for excessive withdrawals from a savings account. It also created a lineup of core checking and savings accounts that include basic, clear monthly service charges, with opportunities to reduce or waive the service charge based on a customer’s direct deposit, minimum monthly balance, and overall relationship with the bank. This was meant to capture the full range of their customers’ banking needs and enable them choose what is right for them. These decisions display good understanding of the business which is another key quality of a good leader. The way the business operates also shows understanding of

Money, Banking, and Financial Markets Assignment

Money, Banking, and Financial Markets - Assignment Example Since demand for money varies with interest rates, velocity also changes with changes in interest rates. Demand for money also depends upon the expectations about future interest rates. In an article published in The Globe and Mail on July 31, 2013, the author, Linda Stern, suggested to ignore advice such as â€Å"Don’t take a mortgage with you in retirement†, and â€Å"Older Folks should invest more conservatively† (Stern). In support to the view â€Å"Don’t take a mortgage with you in retirement†, it is stated in the article that carrying forward mortgages over a long period of time not only increases the risk of investment but also involves a greater expenditure on the side of the loan taker. Carrying a mortgage over a long period increases its value and interest, so it is advisable not to use a large amount when paying mortgages and instead to invest that extra amount in some other investment plans which may be beneficial in the long run. Earlie r payment of mortgages is related to the emotions of the loan-taker, reduces the risk and leads to savings due to lower interest payments. Ignoring the advice may be risky, but it may bring greater potential and stronger chance of capitalization since no one is aware of the opportunities that may come in the future. The situation will be more understandable from the following example. A person has $100,000 in cash and a 15-year mortgage with a balance of $100,000 at 4% interest. Case 1: The person decides to pay off his mortgage with the available cash and to invest the mortgage payment that would have to be paid per month (i.e. $739) for 15years at 7%. By paying the mortgage, the person saves %33,143, and at the end of 15 years investment amounts to $237,706. Case 2: The person decides not to pay the mortgage and invest cash of $100,000 for 15 years at 7% interest. After 15 years, the investment amounts to $284,894, and $33,143 are paid as interest for the mortgage. Subtracting the payment, a net gain of $251,751 is made by the person, if he/she decides to pay off the mortgage later. On deciding to pay off the mortgage, the person has received an emotional satisfaction, less risk and higher liquidity, but he/she has also suffered an opportunity loss of $14,045. Thus, every financial investment and debt is added to a price and risk, but decision is to be taken wisely. In support to the view â€Å"Older Folks should invest more conservatively†, it is stated in the article that when a person moves towards old age, he/she should either invest less in stocks or withdraw all money from stocks and invest in instruments which will guarantee returns with less amount of risk involved. They may choose to invest in certificate of deposits or bonds. Investment on guaranteed returns for short term may hold a support to the person at the time of retirement since it would assure a return at the end of the period. But ignoring the advice, it can be said that investment in bonds too can be a risky investment to the investor since future can only be assumed and not ascertained. If the interest rate rises in future, the bond holders may lose value, and investment will become riskier. Even with the rise in the expected rate of inflation the investor may face the same risk. Thus, the person may face the same