Management
West Texas is located on the western part of the United States. Midland-Odessa is located in West Texas and has a population of 274,002 residents. External and internal environment are factors which affect the business operations in an area. External environmental factors are not within the control of the management. Internal environmental factors can be controlled by the management.
The political system in Midland Odessa is conservative. Change in the political party is not common. Most of the people support Republican Candidates. Tax policies and safety regulations provide a favorable environment for Commercial State Bank to operate. The economy of Midland/Odessa depends heavily on the petroleum industry. The oil boom economy may lead to an increase in business deposit account. This helps to improve on the bank operations. There is a lower population density than the other states in the United States. The population is made up of White, African American, Native American, Asian and Pacific Islander. The demand of the population may influence the type of service the bank is going to offer. They may create a high demand for business deposit accounts which is favorable to the Commercial State Bank. Technology plays a vital role in how the Bank is going to carry out its business. Commercial State Bank must identify the new developments in the area. This helps to improve the delivery of services to the customers. The presence of universities and colleges in the area may help in technology development. The Bank must ensure that they adopt the new technology. This is essential for the success of the Commercial State Bank. Natural environment involves the environmental concerns. The concerns are pivotal to the business. This includes natural disasters, which may disrupt the business operations. Commercial State Bank should carry out an environmental risk assessment to identify the potential effects of the natural environment on its operations. For example, natural disasters may affect the oil companies. This may reduce the demand for business deposit accounts.
Value chain analysis helps to improve the competitive advantage of a business. Commercial State Bank should improve on delivering its services to the customers. In addition, they should increase their level of efficiency and effectiveness. Application of the value chain analysis is crucial for competitive purposes. It helps to improve on the competitive advantage of a business.
The goals and objectives of marketing are to increase the number of customers through creating awareness on the advantages of business deposit accounts. Marketing mix involves price, product, place and promotion. Commercial State Bank may have a promotion for the first 100 customers who open the business deposit account. They should be located in an area with a high population. Features of business deposit account should be made available to the public.
Personnel planning and policies should be set up. This involves procedures for hiring, training and performance appraisal. Recruitment should be done based on qualification and experience. Training is an on—going process which helps to improve the skills of the staff members. Performance appraisal should be based on the number of deposit accounts a staff has opened. Compensation and benefit of the employees should be based on the market value.
The bank may hire a competent human resource management team to assist in recruitment of staff. Benchmarking involves setting targets based on the market leader in the region. The Bank should identify the market leader in banking services in the region. They should set their targets based on the identified market leader.
