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Entertainers Credit Union Limited

Autor:   •  March 19, 2014  •  Essay  •  952 Words (4 Pages)  •  1,275 Views

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INTRODUCTION

Managers are often faced with problems that may affect the flow of work. It is crucial that managers find the most suitable way of solving the problems they encounter. Some of the many problems encountered involve decision making, and managers need to come up with the most effective system in order to make decisions in a quick and effortless manner.

The decision support system is one such system. According to Laudon et al (2006), decision support systems are "information systems at the organization's management level that combine data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making". (p. 462)

STATEMENT OF PROBLEM

The Entertainers Credit Union Limited has been in existence for twenty years. Its main revenue building products are loans. At present, however, management has noticed a significant downturn in revenues linked directly to a persistent reduction of loans inflow as well as a decline in applications for membership.

The marketing team was tasked with the responsibility of researching the source of this worrying trend, and it was discovered that one of the most significant grouses maintained by most members was that the length of time between signing of the Loan Application and getting meaningful feedback on whether their loans were approved or not, took an unbearably long time. This was a major turn-off for the members.

We have therefore decided to assist the management team and staff of the credit union by coming up with a system that will significantly decrease the approval times for loans thus making happier members and the possibility of increased levels of income and membership.

HOW PROBLEMS AFFECT WORK FUNCTION

Currently the credit union has a manual system for approving its loans. Loan application forms are first checked by Loans Officers, and then the General Manager, after which it is passed on to a Credit committee which meets once a week to discuss whether the loans should be approved or not.

This process can be tedious and often frustrating for members, especially because the committee is not always able to meet every week, and the loans cannot be approved or declined without the input of the committee.

The wait period experienced with the current approval system is a major disappointment for members who request the loans and need the funds urgently, and since there is no shortage of competitors in this financial arena, disgruntled members can easily approach any number of competitors in the field to access similar loans with shorter approval times.

Such drastic action by any number of members could spell potential

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