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Risk Analysis on Investment Decision

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Risk Analysis on Investment Decision


Problem Solution: Intersect Investments

University of Phoenix

Problem Solution: Intersect Investments

This paper details how Intersect Investments studied itself to find opportunities for improvement and change. It created a compelling end-state vision that used to formulate goals and solutions. After using generic benchmarking to devise several Tier One solutions, Intersect combined them to make three Tier Two solutions. It compared each solution to the goals and analyzed the risks involved for each. After choosing the optimal solution, it detailed an implementation plan. Finally, it evaluated the solution against predetermined metrics.

Situation Analysis

Issue and Opportunity Identification

Intersect Investments has come through some hard times financially in the aftermath of September 11, 2001. The market is uncertain and the customers are very exacting. Through all this, Intersect has not changed its business model. The CEO, Frank Jeffers, is trying to implement a “customer intimacy” program where Intersect focuses on building meaningful and profitable relationships with its customers (University of Phoenix, n.d.). While some of the departments have internalized this ideal, Sales is still resisting the change. Due to this lack of cohesiveness between the departments, employees and customers alike are both receiving mixed messages.

Stakeholder Perspectives/Ethical Dilemmas

There are four main stakeholders at Intersect: management, employees, current customers, and prospective customers. Management values profitability, whereas employees value job security. This can create an ethical dilemma, which “is encountered in a situation where [an individual] must choose the best moral course of action in a predicament from which there are two competing and equal moral choices” (Tallant & Ryberg, n.d., para. 10). Both are valid concerns; however, they sometimes counteract each other. There is a distinction between current customers and prospective customers because of different focuses. Current customers have already committed their money to Intersect’s stewardship. They want reliability and trustworthiness from Intersect. Prospective customers have not committed anything yet but need information. They want options to choose from and complete honesty. If Intersect offers a product, then that product should work as advertized. There is another possible conflict between the employees and the customers. Employees do their best to satisfy the customer, but there comes a time when they have to take care of other priorities like family. Customers want the best service possible, but that comes at a cost to the employees.

Problem Statement

Intersect Investments has an opportunity to become one of the top investment companies in the United States by promoting customer and employee satisfaction.

End-State Vision

Intersect Investment Services can have a bright future. It is among the top three investment services companies in the United States. Its employees are satisfied with the work pace and company leadership. Intersect offers several well-planned packages of financial products that focus on specific customers: individuals, small businesses, and large businesses. Also, there is flexibility to fully modify the packages for unique customer needs. The customers fully trust Intersect with their money for a variety of financial needs. Even though some competitors offer cheaper rates, none can compare to the value added by Intersect’s outstanding customer service and product selection. The entire firm has a culture that focuses on taking care of the customers and being responsible with their money.

Alternative Solutions

Providence Hospital nurses demonstrated the effectiveness of forming coalitions to enact change. By uniting many doctors, surgeons, the city police, and 90 percent of all registered nurses in a strike coalition, they were able convince management to improve patient care and the working environment (Nawar, 1999). They were able to form grievance committees to ensure that the changes are permanent. Intersect can form a coalition (McShane & Von Glinow, 2005) of real change leaders (RCL) to propel the organizational change. Katzenbach (1996) describes RCLs as leaders from all organizational levels that forge “rock-solid connections among marketplace realities, and

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