Strategic Positioning San Jose Goodwill Bank has been experiencing significant competition from nonbanking financial service providers such as mutual funds. As a result, interest rates were lower, and the bank found it more difficult to maintain or increase deposits, Profits had declined for the past two years. Concerned about the situation, the bank's executive managers commissioned a consulting group to assess the profitability of the bank's products and customers. The consulting group implemented an ABC system that traced costs to both products and customers. An ABC customer profitability analysis rated the customers on a scale of one to live with one being the most lucrative. Customers in the number one category earned an average profit of $1,500 per year for the bank, while customers in the nith category were costing the bank an average of $500 per year. The consulting group also conducted a marketing survey and discovered that the higher and customers were leaving for banks that offered a broader range of financial products. Armed with the financial and marketing information provided by the consulting group, the banking executives decided to implement the following: 1. Broaden the markets to include investment and insurance products. The goal was to become a complete financial services provider to stop the loss of the higher end customers. The broadening would also reduce the dependence of the bank on interest-based revenue. (investment and insurance products produce fee-based revenues.) 2. Alter the customer mix by targeting only the upper three customer segments. 3. Set the bank apart from competitors by offering special, high-quality services to targeted customers a. The upper segment of customers will be classified as "Premier One and will be issued a gold card. When presenting the card to a concierge at the door, the customer will be taken to a special teller window with no line, or to the desk of a specially trained bank officer b. For the highest-end customers, no-questions asked refunds on fees that they think they shouldn't pay categories one and two). Middle-end customers can negotiate. Low-end customers must pay the fees (categories four and five). c. Provide secret, toll-free "VIP" numbers to customers in the Premier One category. In this way, they will have immediate access to a bank official for any inquiry they may have. d. Impose a $4 teller fee for lower end customers (categories four and five). 4. Improve operating efficiency by increasing productivity and allminating costs that produce ne revenues. Required: of the three (cost leadership, differentiation, and docusing), which one(s) are apparently receiving the most emphasis? All three strategies X Strategic Positioning San Jose Goodwill Bank has been experiencing significant competition from nonbanking financial service providers such as mutual funds. As a result, Interest rates were lower, and the bank found it more difficult to maintain or increase deposits. Profits had declined for the past two years. Concerned about the situation, the bank's executive managers commissioned a consulting group to assess the profitability of the bank's products and customers. The consulting group implemented an ABC system that traced costs to both products and customers. An ABC customer profitability analysis rated the customers on a scale of one to live with one being the most lucrative customers in the number one category earned an average profit of $1,500 per year for the bank, while customers in the ninth category were costing the bank an average of $500 per year. The consulting group also conducted a marketing survey and discovered that the higher end customers were leaving for banks that offered a broader range of financial products. Armed with the financial and marketing information provided by the consulting group, the banking executives decided to implement the following: 1. Broaden the markets to include investment and insurance products. The goal was to become a complete financial services provider to stop the loss of the higher and customers. The broadening would also reduce the dependence of the bank on interest-based revenue. (Investment and insurance products produce fee-based revenues.) 2. Alter the customer mix by targeting only the upper three customer segments. prs by offering special, high-quality services to targeted customers: Differentiation strategy rs will be classified as "Premier One" and will be issued a gold card. When presenting the card to a concierge at the door, the customer will be taken to a Focusing strategy ne, or to the desk of a specially trained bank officer no-questions asked refunds on fees that they think they shouldn't pay categories one and two). Middle-end customers can negotiate. Low-end Leadership strategy categories four and five). Differentiation and focusing strategies umbers to customers in the Premier One category. In this way, they will have immediate access to a bank official for any inquiry they may have. rend customers (categories four and five). Focusing and leadership strategies creasing productivity and eliminating costs that produce no revenues. Differentiation and leadership All three strategies Jhtiation, and focusing), which one(s) are apparently receiving the most emphasis? All three strategies X Prius Next > Strategic Positioning San Jose Goodwill Bank has been experiencing significant competition from nonbanking financial service providers such as mutual funds. As a result, interest rates were lower, and the bank found it more difficult to maintain or increase deposits. Profits had declined for the past two years. Concerned about the situation, the bank's executive managers commissioned a consulting group to assess the profitability of the bank's products and customers. The consulting group implemented an ABC system that traced costs to both products and customers. An ABC customer profitability analysis rated the customers on a scale of one to five, with one being the most lucrative. Customers in the number one category earned an average profit of $1,500 per year for the bank, while customers in the fifth category were costing the bank an average of $500 per year. The consulting group also conducted a marketing survey and discovered that the higher and customers were leaving for banks that offered a broader range of financial products. Armed with the financial and marketing information provided by the consulting group, the banking executives decided to implement the following: 1. Broaden the markets to include investment and Insurance products. The goal was to become a complete financial services provider to stop the loss of the higher and customers. The broadening would also reduce the dependence of the bank on interest-based revenue. (Investment and insurance products produce fe-based revenues) 2. Alter the customer mix by targeting only the upper three customer segments 3. Set the bank apart from competitors by offering special, high-quality services to targeted customers a. The upper segment of customers will be classified as Premier One and will be issued a gold card. When presenting the card to a concierge at the door, the customer will be taken to a special teller window with no line, or to the desk of a specially trained bank officer b. For the highest and customers, no questions asked refunds on fees that they think they shouldn't pay categories one and two), Middle-end customers can negotiate. Low-end customers must pay the fees (categories four and five). Provide secret, toll-free VIP numbers to customers in the Premier One category. In this way, they will have immediate access to a bank official for any inquiry they may have d. Impose a 14 teller fee for lower and customers (categories four and five) 4. Improve operating efficiency by increasing productivity and eliminating costs that produce ne revenues Required: of the three (cost leadership, differentiation, and focusing), which one(s) are apparently receiving the most emphasis All three strategies X