BUSINESS MANAGEMENT

*BUSINESS MANAGEMENT

Read the case below carefully and answer the questions which follow.

*HOME TOUCH BANK LIMITED*

The Home Touch Bank Limited was established in 2009 in Freetown, Sierra Leone. Its aim was to provide a wide range of financial services to the newly established fishing and processing companies located in the costal towns of Shenge and Tombo and to other local fishing communities.
Between 2010 and 2014, the blank recorded high profits. Its reputation as a provider of variety of banking services soared. Customers were particularly delighted with the conditions attached to overdraft and concessionary loans in the purchase of fishing inputs.
The incresse in demand for the bank's products made the directors to introduce a decentralization policy so that customers could be better served. Branch managers were allowed to take all decisions without referring to head office except on critical matters. Customer's requests were promptly attended to. The average waiting time to serve customers was significantly shortened. As a result of quick decision-making at the various branches, efficiency in service delivery was enhanced.

In 2015,the Board of directors of the bank decided to take over most of the decisions made by branch managers.The branch managers were now to refer to Headquarters any loan request above ten thousand leones for approval. All concessionary loans were also to be approved by the Head Office.By the end of 2015, the branch offices started experiencing drop in their customer level and staff turnover incresse. Competition increased sharply as a result of three new banks That entered the market.
________________________________________________________________________________________

*(a)* (i) Explain decentralization.

(ii) State *three* benefits that the bank  derived from decentralization.

*(b)* List *four* Services that could be provided by the bank.

*(c)* State *three* factors that contributed to the initial success of Home Touch Bank Limited.

*(d)* Suggest *three*recommendations that will help revive Home Touch Bank Limited.