Cooperative Bank Case
Title of the Report:
Case Analysis of ‘The Cooperative Bank’
The Purpose:
The purpose of the report is to submit the analysis of The Cooperative Bank based on the Activity Based Costing methodology
To whom it is submitted (Name of the instructor):
Prof. Sandhya Bhatia,
Professor, Managerial Accounting,
Indian Institute of Management, Udaipur
Name of the Author:
Abhishek Sengupta
Anubhav Nigam
Ravindran Damodaran
Saurabh Srivastava
Date of Submission:
24 February 2013
Organization/Institute’s name (and logo):
Indian Institute of Management, Udaipur
TABLE OF CONTENTS
Situation analysis………………………………………………………………………………5
The Problem…………………………………………………………………………………...5
The Options……………………………………………………………………………………5
Criteria…………………………………………………………………………………………6
Evaluating the Options………………………………………………………………………...6
The Recommendations…………………………………………………………………...........6
Action Plan…………………………………………………………………………………….7
Contingency Plan……………………………………………………………………………...7
Exhibits………………………………………………………………………………………...8
BACKGROUND
The Cooperative Bank, a wholly owned subsidiary of Co-operative Wholesale Society (CWS) became a settlement bank in United Kingdom by 1975. The bank was having an impressive growth and enjoying an increasing customer base until 1990 when the bank recorded losses due to the recession in UK.
The bank was in the process of a strategic overhaul. The management identified the need to be much more focused. The bank had too many products for the customer base it was catering. So the target was to identify the profitable and non-profitable products and customers and devise the appropriate strategic plans to increase its profit levels.
THE PROBLEM
The organization is facing with a high cost-income ratio and hence as a result was suffering operational losses.
FLAWS IN TRADITIONAL COSTING SYSTEM
• Cost centers were
Case Analysis of ‘The Cooperative Bank’
The Purpose:
The purpose of the report is to submit the analysis of The Cooperative Bank based on the Activity Based Costing methodology
To whom it is submitted (Name of the instructor):
Prof. Sandhya Bhatia,
Professor, Managerial Accounting,
Indian Institute of Management, Udaipur
Name of the Author:
Abhishek Sengupta
Anubhav Nigam
Ravindran Damodaran
Saurabh Srivastava
Date of Submission:
24 February 2013
Organization/Institute’s name (and logo):
Indian Institute of Management, Udaipur
TABLE OF CONTENTS
Situation analysis………………………………………………………………………………5
The Problem…………………………………………………………………………………...5
The Options……………………………………………………………………………………5
Criteria…………………………………………………………………………………………6
Evaluating the Options………………………………………………………………………...6
The Recommendations…………………………………………………………………...........6
Action Plan…………………………………………………………………………………….7
Contingency Plan……………………………………………………………………………...7
Exhibits………………………………………………………………………………………...8
BACKGROUND
The Cooperative Bank, a wholly owned subsidiary of Co-operative Wholesale Society (CWS) became a settlement bank in United Kingdom by 1975. The bank was having an impressive growth and enjoying an increasing customer base until 1990 when the bank recorded losses due to the recession in UK.
The bank was in the process of a strategic overhaul. The management identified the need to be much more focused. The bank had too many products for the customer base it was catering. So the target was to identify the profitable and non-profitable products and customers and devise the appropriate strategic plans to increase its profit levels.
THE PROBLEM
The organization is facing with a high cost-income ratio and hence as a result was suffering operational losses.
FLAWS IN TRADITIONAL COSTING SYSTEM
• Cost centers were