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    Module 3 Athena Bancorp Case

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    Vedant Singh
    Beth Daniels started her own banking company, Athena Bancorp, in 2016 despite advice against entering the mature banking industry. She had an aggressive 5-year plan to grow to 15 branches and triple loans and deposits, which put high stress on employees who had to work long hours. The Chief HR Officer also noted difficulties hiring enough motivated employees to meet growth targets. Beth believed in high customer service and online offerings to drive loyalty, but the launch of a new IT system caused delays and impacted growth and profitability. The case examines problems faced by a motivated but overambitious startup in a regulated industry.

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    Module 3 Athena Bancorp Case

    Uploaded by

    Vedant Singh
    291 views2 pages
    Beth Daniels started her own banking company, Athena Bancorp, in 2016 despite advice against entering the mature banking industry. She had an aggressive 5-year plan to grow to 15 branches and triple loans and deposits, which put high stress on employees who had to work long hours. The Chief HR Officer also noted difficulties hiring enough motivated employees to meet growth targets. Beth believed in high customer service and online offerings to drive loyalty, but the launch of a new IT system caused delays and impacted growth and profitability. The case examines problems faced by a motivated but overambitious startup in a regulated industry.

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    Beth Daniels started her own banking company, Athena Bancorp, in 2016 despite advice against entering the mature banking industry. She had an aggressive 5-year plan to grow to 15 branches and triple loans and deposits, which put high stress on employees who had to work long hours. The Chief HR Officer also noted difficulties hiring enough motivated employees to meet growth targets. Beth believed in high customer service and online offerings to drive loyalty, but the launch of a new IT system caused delays and impacted growth and profitability. The case examines problems faced by a motivated but overambitious startup in a regulated industry.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    291 views2 pages

    Module 3 Athena Bancorp Case

    Uploaded by

    Vedant Singh
    Beth Daniels started her own banking company, Athena Bancorp, in 2016 despite advice against entering the mature banking industry. She had an aggressive 5-year plan to grow to 15 branches and triple loans and deposits, which put high stress on employees who had to work long hours. The Chief HR Officer also noted difficulties hiring enough motivated employees to meet growth targets. Beth believed in high customer service and online offerings to drive loyalty, but the launch of a new IT system caused delays and impacted growth and profitability. The case examines problems faced by a motivated but overambitious startup in a regulated industry.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Case Summary

    So basically, this case is about Beth Daniels who started her own banking company known as
    Athena Bancorp in 2016. Before she started the company people were advising against it
    because banking is a mature overregulated industry. But she was confident because Beth and
    her team thought that loans and deposits would increase threefold in the period of the next 5
    years. Her market strategy for the next five years was also a bit too aggressive to grow to 15
    branches from the day of the start of her company. To achieve this goal, she has to depend on
    employees who are highly dedicated and will be willing to work for long hours. But this has an
    adverse effect and their physical, mental and emotional stress on the employees causing them
    to lose spirit. Another problem faced by Athena Bancorp according to James Paul the Chief
    Human Resources Officer is that they aren’t able to hire enough employees who are motivated
    and help complete her 5-year growth target for her company. And in this case, we have a
    deeper look at the problems faced by industry run by motivated Human Resource. Another
    thing, Beth believed in the customer first philosophy and helped her bank or company grow.
    She also thought their high-quality service would bring customer loyalty and include online
    services for customers to check balances, pay bills and order checks. Lastly, she felt if she did
    not capitalize on the first mover strategy it will mean that another banking company would take
    advantage of it. The launch of the it system Trust was and it’s impact on the growth and
    profitability of the bank is also another major point in this case which have a major impact on
    the success of Athena Bancorp and James suggested to stop the opening of other branches until
    the new IT system was up and running.

    Issues
    Stress on Employees- The pressure on employees was high and were physically, mentally and
    emotionally tired from working longer hours. This also affected their spirit and affected their
    performance.
    Over Ambitious Growth Plan- Though it may seem good Beth had an over ambitious plan of 5
    years and did not consider the unexpected risks expected with the business.
    Risk of Recession- Though a huge industry every industry has suffered recession once or more in
    a country and it had already happened a few years ago in 2008 and could happen again with
    some natural pandemic or man-made situations.
    Recommendations
    Replan The Launch Of TRUST- By preponing the launch of TRUST Athena Bancorp can boost their
    clientele and increase their growth. This will also mean that the stress on employees would be
    reduced so and their performance of them will increase and affect the overall performance of
    the company in a positive way.
    Hiring More Employees- Hiring more employees to reduce the physical and mental stress and
    divide the workload with more employees would be an effective idea for Athena Bancorp.
    Making Achievable Targets- CEO Beth Daniels had an overambitious nature so that will have to
    change to having more achievable targets to increase the stability of the company .

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