Akbar Gahramanov
Operational Management
Case 1: ING Direct Canada
2015.10.07
ING Direct Canada operates in Canada as a Schedule II bank which has launched its operations on April 22, 1997. The strategy of the bank was to differentiate itself from the local companies by expanding its banking operations in Canada using low cost strategy. It achieved low cost in its operations by offering easy enrolment processes without any service fees. Bank also offers high interest rates on deposits and low rate on loans, which also helped it to achieve big market share. In the case we also got informed shortly about work process and organisational structure of company. However after some time as the company grew it faced obstacles which could affect its growth. The case determines the problems and expresses some potential solutions for dealing with them. …show more content…
The main problem for the company was an increase in volume of mails, providing same day processing of new and existing accounts has become challenging for the operations department. These has resulted in cost overruns with increased overtime hours and errors for the employees. The overtime hours had also created some costs for the company, where it had to pay extra salaries for the workers. The thing also related with lack of staff was the space constraint in the building. It was very hard for the company hire to new workers as there were not enough space for extra employer. Lastly, the lack of forecasting activities has also affected the work process of the company, because if they had seen these scenario coming ahead they could have taken some
Operational Management
Case 1: ING Direct Canada
2015.10.07
ING Direct Canada operates in Canada as a Schedule II bank which has launched its operations on April 22, 1997. The strategy of the bank was to differentiate itself from the local companies by expanding its banking operations in Canada using low cost strategy. It achieved low cost in its operations by offering easy enrolment processes without any service fees. Bank also offers high interest rates on deposits and low rate on loans, which also helped it to achieve big market share. In the case we also got informed shortly about work process and organisational structure of company. However after some time as the company grew it faced obstacles which could affect its growth. The case determines the problems and expresses some potential solutions for dealing with them. …show more content…
The main problem for the company was an increase in volume of mails, providing same day processing of new and existing accounts has become challenging for the operations department. These has resulted in cost overruns with increased overtime hours and errors for the employees. The overtime hours had also created some costs for the company, where it had to pay extra salaries for the workers. The thing also related with lack of staff was the space constraint in the building. It was very hard for the company hire to new workers as there were not enough space for extra employer. Lastly, the lack of forecasting activities has also affected the work process of the company, because if they had seen these scenario coming ahead they could have taken some