Bunga Raya Bank was known as one of the largest and well known national bank that prides itself on achieving healthy profits each of year. But, along the few years, the economy was in its state of undesirable. This problem has to affect the profits of Bunga Raya Bank which can be seen that the profits were influenced by the inflation rate as well as they also have to compete with other major banks. Inflation is basically known as two terms either the rising price of goods or fall value of money (Kennon, 2015). Apart from that, with a lot of branches, the Board of Bunga Raya Bank found it difficult to manage the smaller branches especially in a particular region. This phenomenon brings to the main issues that can be found in Bunga Raya Bank.
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The Board also recommended the downsizing of their organizational structure to be considered by Yusuf. Downsizing is one of the most frequently used business strategies for reducing cost, returning firms to profit or for restructuring businesses following takeover, mergers, and acquisitions ( Cooper, Pandey, & James, 2012). Therefore, in this case, downsize the operations will affect the employees of the company as it will cause the employees to lose their job. This situation has caused the managerial dilemma but Yusuf and the Bank’s Board of director were fully aware of this situation and prepared to pay the …show more content…
Latifa has close relationship with staff and customers. Latifa is the one that doing road travelling to visit every Bunga Raya Bank’s branches in order to make sure the operations are functioning well. Yusuf trust Latifa to approach the staff and customers regarding his plan. However, on the same time, Yusuf also realizes that Latifa will oppose his plan to do the downsizing and closing 70 regional branches. Even so, Yusuf is confidence with his decision and ready to take the action because he has the support of the Board and motivated by $1 million reward he will get if he is able to give a good performance that suit with the board’s
The Board also recommended the downsizing of their organizational structure to be considered by Yusuf. Downsizing is one of the most frequently used business strategies for reducing cost, returning firms to profit or for restructuring businesses following takeover, mergers, and acquisitions ( Cooper, Pandey, & James, 2012). Therefore, in this case, downsize the operations will affect the employees of the company as it will cause the employees to lose their job. This situation has caused the managerial dilemma but Yusuf and the Bank’s Board of director were fully aware of this situation and prepared to pay the …show more content…
Latifa has close relationship with staff and customers. Latifa is the one that doing road travelling to visit every Bunga Raya Bank’s branches in order to make sure the operations are functioning well. Yusuf trust Latifa to approach the staff and customers regarding his plan. However, on the same time, Yusuf also realizes that Latifa will oppose his plan to do the downsizing and closing 70 regional branches. Even so, Yusuf is confidence with his decision and ready to take the action because he has the support of the Board and motivated by $1 million reward he will get if he is able to give a good performance that suit with the board’s