Inland Bank Case Revisited

Inland Bank Case Revisited - currently work there? Where...

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Inland Bank Case Revisited This case is about Inland Bank. This bank recently bought out another bank and is struggling to figure out which branches to keep open and which to close. There are two major decisions that need to be made. The first is whether or not to close the branch. After that, the decision that follows needs to be whether or not to put an ATM in its place. There are many stakeholders in this case. The first would have to be the community. If a bank shuts down, how will the community react? Will they reject the incoming bank? Many customers are very loyal to their bank, and would have a hard time accepting all the new changes and adjustments. The second stakeholder would have to be the employees of the bank. If INB shuts down the branches in the questioned cities, what will happen to the jobs of the people who
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Unformatted text preview: currently work there? Where will they go? Because these people work in this bank, could they spread a bad name for the bank if they get fired? Friedman would say, in this case, that INB should do what is best for the company. The town can get by on its own. His solution to the problem would be just to remove the branches in question. Freeman’s stakeholder theory leads me to the same conclusion in this case because Freeman says that managers should be unconstrained, and in such a poor community, they are not unconstrained, and especially not in the Banking industry. There are so many laws and regulations put in place by the FED that “unconstrained managers” are something one could only dream about....
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This note was uploaded on 08/29/2011 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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