Management Case

Part 1

1. His first strategic initiative was to strongly focus on becoming a more safe company, rather than the profit margins, sales growth rates, or share appreciation.

2. He places the highest priority on the employees of the company.

3. The interest of the employees that was being met was their safety at the company and how safe the environment should be.

4. Besides their safety improving they also got higher sales, income, and profits. These all benefit shareholders who have bought shares of the company and helped meet their financial interests by becoming more successful.

5. This strategy tells me that if you satisfy one stakeholder in a company it may create a domino effect and end up improving many other aspects. If you satisfy the workers needs, it may make your business more productive which will lead to happier customers, which could make it more profitable leading to shareholders benefiting.

Part 2

The first decision that I would make would to not go ahead with the decision to raise the fees on the customers who are less profitable. One big problem many people have with banks are the decision on whether to trust them or not, and raising the fees on many of the customers will only lead to more skepticism and less trust. Also this decision might lead to the higher customers feeling that their rates and fees might change. These customers could see that since it happened to the less profitable customers it might just as quickly happen to them. This will cause the other customers to feel threatened and leave and go to another bank. However these customers are still unprofitable and do not help the bank so there has to be something done with them. One thing that could be done is requiring these customers to put more money into the bank. If they can only afford to put less than $500 in the