Case Analysis of First National Bank
First National Bank | A Case Study “If we don't change, we don't grow. If we don't grow, we aren't really living.” -Gail Sheehy | Amil, Paula BiancaIsidoro, Joanna MarieRojas, RobertSampang, Makrene LaraSeptember 17, 2010Prof. Aliza Racelis |
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EXECUTIVE SUMMARY
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Point of View: Sammy Viray, New FNB President
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Background Information
Sammy Viray and his assessment of the bank * In June 3, 1993, Sammy Viray reported to First National Bank (FNB) as its new president. * Studied in one of the prestigious Ivy League schools in the US and rose to become an influential bank officer at Citibank, a multinational bank, in the ‘80s and the president of a government bank prior to joining FNB. * After weeks of observation, he thought that the bank needs a “major surgery”. He made a list of what should be accomplished within his first year as president: * Modernization of operations through computerization making all branch operations “on-line.” * Branches and departments should have financial targets. * Human Resources Development programs were needed. * New products and services had to be introduced. * More branches should be opened. * He was convinced that FNB should not waste time because of the liberization of the banking industry. * He thought that younger employees seemed to be more aggressive and capable of coping with his vision.
The Bank * First National Bank has been in business for 30 years. * It has 50 branches as of 1993. * It has a foreign partner with 40% interest on FNB’s stocks. * Sixty percent of FNB’s stocks is held by a single family who dominates he management policies at the Board level. * Because the former president was Chinese, majority of the bank’s business
-------------------------------------------------
EXECUTIVE SUMMARY
-------------------------------------------------
Point of View: Sammy Viray, New FNB President
-------------------------------------------------
-------------------------------------------------
Background Information
Sammy Viray and his assessment of the bank * In June 3, 1993, Sammy Viray reported to First National Bank (FNB) as its new president. * Studied in one of the prestigious Ivy League schools in the US and rose to become an influential bank officer at Citibank, a multinational bank, in the ‘80s and the president of a government bank prior to joining FNB. * After weeks of observation, he thought that the bank needs a “major surgery”. He made a list of what should be accomplished within his first year as president: * Modernization of operations through computerization making all branch operations “on-line.” * Branches and departments should have financial targets. * Human Resources Development programs were needed. * New products and services had to be introduced. * More branches should be opened. * He was convinced that FNB should not waste time because of the liberization of the banking industry. * He thought that younger employees seemed to be more aggressive and capable of coping with his vision.
The Bank * First National Bank has been in business for 30 years. * It has 50 branches as of 1993. * It has a foreign partner with 40% interest on FNB’s stocks. * Sixty percent of FNB’s stocks is held by a single family who dominates he management policies at the Board level. * Because the former president was Chinese, majority of the bank’s business