Business decision making Essay Example | Topics and Well Written Essays - 3500 words

Business decision making - Essay Example Within the five year period, the number of elite clients has risen from 453 in 2006 to 1124 in 2010. However, there was a sharp in the number of this category of clients in 2007, with the bank recording only 411 Elite clients (Institute of Business and Management, 2012). Additionally, the report shows that the number of Preferred clients has grown by approximately 30 per cent, rising from 3148 in 2006 to 3809 in 2010 (Institute of Business and Management, 2012). This rise has been steady except for the year 2008, which experienced a sharp fall in this category of clients (3148), as compared to the previous year’s 3551. The same trend has occurred in the amount of deposit, where the maximum deposit for the regular clients was 690,354,000 in 2010 (Institute of Business and Management, 2012). The success of the bank has not been on a regular trend though. There has been a mix between the years of success and the drops in terms of deposits. Rating success and failures in terms of income, the final year 2010 indicated success for all the three classes of clients except for a drop in 2007. The remaining years have shown an indicator to financial growth in income, considering that it has been a continuous trend of progressive increase from 2008 to 2010. Comparing each class for every year, regular clients outnumber the rest of the classes, followed by the preferred class and finally the elite class. Perhaps owing to that, the amount of deposit for the regular clients has been the greatest followed by the preferred class and eventually the elites. 1.2. Data Analysis and Summary The table below shows the analysis of the data for all the clients of the bank DM. It shows the average and the mean for all the five years. However, the function for computing modes did not function because none of the values appeared more than once. Table 1: Data Analysis table for the bank DM for performance from 2006 to 2010 (i). From the analysis, it appears that the regular clients are more on average than all other clients, followed by the preferred clients then the elite clients. The deposit balance for the regular clients is also higher than for the categories of clients, followed by the preferred clients then the elite clients in the third rank. The same result is observed for the service income, where the regular clients lead followed by the preferred and finally the elite clients. From this analysis, the most advisable decision Bank DM executive committee can make is to develop marketing strategies for the other two client categories. The strategies can begin from analyzing customer needs concerning the preferred and the client elite accounts. After the analysis, there are two optional actions that the bank can consider. First, there should be a more structured sales promotions program for increasing the performance level of the less performing accounts. The customer satisfaction level can enable the executive committee to improve the qualities of the ac counts. If the sales promotions do not yield the expected outcomes, the next option is to eliminate the accounts from bank and develop a better account product for the preferred and the elite customers. (ii). The second analysis uses measures of dispersion such as variance and standard deviation of the distributions of the numbers for the three banks for all the five years. The measures of dispersion appear in the table below Account Type Number of Accounts Deposit