A CASE STUDY ON
THE RURAL LENDER
To be submitted
to Mrs. Dina Wong-Remoto
in part fulfillment of the requirement in Management 12-D
Earl Adrian C. Aseñas
Gil J. Buenavista
Georgette Mae P. Dineros
Christine Con. Lu
Mum. Nathalie M. Refamonte
Divina Mari A. Tubat
January 24, 2014
I. Central Problem
Significant problem: Should Rural Bank of Suares (RBS) expand and open a fresh branch in the city?
Minimal Problem: In the event they decide on so , precisely what is the best way to increase the bank in the capital metropolis?
II. Alternate Courses of Action
1 . Will not expand – continue with normal functions
2 . Expand in the capital city
a. Do a full expansion by purchasing land and constructing its building w. Do action counter enlargement by letting a space at the business centre
III. Advantages and Disadvantages
1 . Positive aspects:
It is safer to focus their initiatives in the existing bank due to sure salary as confirmed in the 35% increase in cash in on 1994-1995. RBS can save up funds to get future growth plans.
There is no significant growth intended for the bank
The financial institution has already reached their limit in growth within Suares.
2 . a.
City clients can be served better because we are physically closer to them. Marketplace for financial loans and debris are recognized to be much larger in the capital city. The people is ten-times bigger than Suares, as a result has more prospective clients.
The development will cause the financial institution to apply for financing thus raising its debts. There is a danger due to existing competition (national banks, preexisting rural financial institutions, etc). It is hard to generate a breakeven volume with regards to the expenses that might be incurred.
The business center in the capital city can be close to all their current city clients. There is no more complications in finding a great location, since it...