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Report by Michal Bodnar and team on Auric Bank Performance on 11 April, 2013 1. Introduction The aim of the report is to overview the company performance of Auric Bank and to consider options how to manage its declining customer satisfaction and increasing costs. As members of a team of workers from an outside Consultancy company, we were authorized to write this report by the management of Auric Bank. We will write a custom essay sample on Business.Report or any similar topic only for you Order Now The report is based on our research about bank and the options outlined by the Chief Executive of the Auric Bank. This report concludes with our conclusions on the best option for the bank as well as with some recommendations how to improve customer satisfaction and decline the costs. 2. Findings 1. Background information The following points summarize our key findings. The company under study is Auric Bank which experienced significant loss last year due to unprofitable investments that reached ? 1. 5 billion. The bank reviewed its operation and found out that consumers think that the bank is charging them too much for their services and the bank does not care enough and does not understand their customers’ needs anymore. The review concluded that the bank should reduce costs to increase its profits and share price. As a part of a major reorganization of their business, the Auric Bank is reviewing several options how to change the services they are providing to their customers. They are mainly looking at cutting costs and increasing efficiency of their call centers. Currently the bank has three call centers in South England and headquarters in London with approximately 2,500 employers. The bank is considering four options for the reorganization of their call centers: †¢ Keep the call centers as they are but increasing their productivity, cutting back business hours and employing more part-time workers †¢ Outsource the call centers to a South African company Resource Plc. with excellent recommendations which will cut the costs in half for the next five years compared to the first option †¢ Outsource the call centers to a young company Orion Plc. from Scotland which may save ? 6 million in next five years in comparison to the first ption †¢ Outsource the call center to a fast growing company X-Source India based in Bangalore with large labor pool which may cut the cost for ? 10. 5 million in next five years 2. Comparative Analysis Based on the data from the Auric Bank it was found that in comparison to year 2011 the costs of the call centers have been raising throughout the whole year 2012. While the rise was milder in the first seven months it be came higher during the rest of the year and in December the costs were more than double compared to year 2011. During the second half of the year a rise in costs occurred although in the same part of the previous year Auric Bank experienced a moderate drop in costs of the call centers. In December 2012 it peaked at almost ? 450 thousand compared to almost ? 200 thousand in December 2011. Reviewing all the materials concerning call centers of the Auric Bank we found that the rise in the costs of the call centers was mainly due to the rise of the customer dissatisfaction and therefore more calls to the call centers which increased costs of their operation. The slight rise of the costs from the beginning of the year can be attributed to the change in the regulations connected to the labor code which increased the costs of the workforce. 3. Conclusions It is clear from the Findings that the Auric Bank can decide on several options when it comes to restructuring the operation of their call centers. We agreed that in addition to the decision on the call centers the Auric Bank should also work on its communication and presentation to the customers, as the increase in the customer satisfaction can clearly contribute to the decline in the costs for the operation of that call centers. Together with this we felt that the Auric Bank should decide to outsource the call centers to the Scottish company Orion Plc. There are a number of reasons for this. Above all we think it is not necessary to move the call centers overseas and the reduction in costs offered by Orion Plc. is sufficient. Moreover, the jobs will stay within the country which may positively affect the perception of the bank by the customers. In addition, this option does not represent any additional costs for moving the perations overseas. 4. Recommendations It is suggested that the Auric Bank takes the following steps in order to improve its performance: †¢ Lower the costs and increase the efficiency of the call centers through outsourcing the services from the Scottish company Orion Plc. †¢ Prepare an image campaign to improve the perception of the bank by its customers †¢ Start lobbying at the government for more favorable employment policy with the argument of moving the jobs overseas How to cite Business.Report, Papers