Inland Nation Bank had just obtained the Home Saving Bank. Senior management was reorganizing and consoli ding local branches of the bank. INB had a good reputation for community involvement and financial performance. The decision to reoranganize the bank's branches made good economic sense. Amy miller, manager of community affairs at INB, was having problems reorganizing the bank's branches. She was concerned about two branches, the Rockdale Branch and the North Madison Branch in her district that would be affected by the move and how the move would affect the neighborhoods.
The Rockdale branch was a small home savings bank, located in an old and declining neighborhood. The bank needed major repairs at an estimated cost of about 500, 00. If that office closed the customers from Rockdale would have to conduct business in another area of town that was about 10-minute auto or bus ride from Rockdale. The North Madison branch was located in a poor neighborhood next to Rockdale. Many of the families were on welfare or public assistance. The INB's management team talked about closing this branch and replacing it with four automatic teller machines within North Madison shopping district.
The move would eliminate about 20 jobs in both places and only a few employees were likely to find jobs within the bank. Miller understood that half of the employees in both branches lived in or near North Madison. When the residents and merchants heard about the closing of the banks they were angry. The news media covered the story, which got the attention of the federal and state banking officials who needed to approve INB's branch closings.
The INB has to submit a plan to satisfy all parties. Amy Miller and her team had a week to recommend a course of action to INB, s president. Since INB has a good reputation for community involvement. The team recommended that the Rockdale branch should remain open so seniors can continue to receive services.
The bank can form a Rockdale's building. The community development center at Rockdale will set up a satellite office at North Madison branch and the center will serve both communities. The benefits for this recommendation would be that the Rockdale branch would get renovated. The community development center and offer different services to educate and train the community. Thus bringing in new businesses to the community. INB can retain employees and hire more people from both communities to work the centers.
This course of action will affect the INB as well as both communities in a positive way.