Organizational Change Plan Essay Example | Topics and Well Written Essays - 6000 words

Organizational Change Plan - Essay Example The situation to be discussed in this case is no exception: the desired change should first be situated within the greater context of the company’s overall goal, in order to determine how best to take the company from its present to its desired status. The present situation Ranchers Bank (RB) is a $3 billion financial services firm that exclusively deals in extending loans to farmer and ranchers for agricultural purposes. It operates solely in Texas and employs 1,000 loan officers in 254 offices located in each county. RB is a traditional bank which waits for clients to walk into its local offices to apply for loans. For several years, the agricultural sector has experienced zero growth, and the company’s profitability has suffered as the rate of new business generated is only half of the rate of payoff. There is a strong possibility that if RB continues doing business the same way it has done so for the past 30 years, it shall eventually end up in bankruptcy. The strategic goal/s RB’s principal goal is to stay viable and avoid bankruptcy; since bankruptcy is inevitable if the bank maintained status quo. RB therefore needed to change from the status quo merely to survive. This leads to the secondary goal – that of growth. ... keeping the main strategic considerations in mind, the resulting plan should be appropriately contextualized to maximize effectiveness and assure practicability. Analyzing the broad economic environment Political The banking industry has been at the center of the recent financial crisis, and while the culprits are principally the major financial conglomerates, the entire industry has been subjected to closer scrutiny both by the political leaders and the public. The need for greater oversight has resulted in legislated regulations which shall be tackled in the discussion on legal issues below. Other than these, emphasis on ethical practices has given rise to industry-wide corporate governance standards consistent with the Basel Committee principles for the international banking community (BCBS, 2010). For small banks to survive, they must likewise comply with the corporate governance benchmarks in their relations with their stakeholders. Economic The economic situation is still tenab le, purportedly on the road to recovery from the 2008 depression. Many markets impacting on loans creation continue to be depressed both on the demand side (e.g. real estate due to the mortgage foreclosures resulting in the housing glut), as well as supply side (e.g., labor market due to the increasing unemployment). The dollar continues to slide such that increasingly savings and transactions in the international market are converting to foreign currencies (e.g. the yuan, which is increasingly being used in international trade and securities floats). The looming budget deficit due not in small part to the trillion dollars in bailout may be exacerbated by continued reports in the bankruptcy of companies benefitted by these loans. Much will depend upon the economic policies of the