1. Summarise Infinity Bank's competitive environment. What are the major issues facing the bank? How did the...
Question:
1. Summarise Infinity Bank's competitive environment. What are the major issues facing the bank? How did the bank perform from 1998-2003?
2. What are the objectives of the customer-profitability analysis (at Infinity and in general)? What does it add to the product-profitability system? Is it important? How should Philippa Smith's customer-profitability pilot study be improved/extended?
3. What were the conclusions of the pilot study and what were the major sources of variation in customer profitability? What were the surprises?
4. Overall what are your recommendations for the bank's managers? Include your views on: whether the bank should consider phasing out current accounts, possibilities for improving this product line and what should be done about unprofitable customers, and potential advantages/disadvantages of the "supermarket" strategy