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. ...