San Jose Community College

San Jose Malilipot, Albay

France B. Candano Case Study #2 HRDM-2D

I. Main problem
The main problem of this case is Eastern Bank’s over expansion strategy, which has led
several issues, including non-collection of overdue loans and unethical behavior by
some employees.

II. Specific Problems

A. Over expansion: Eastern Banks aggressive expansion strategy has led to branches in
many redundant and unprofitable locations.
B. Non-collection of overdue loans: the bank is facing challenges in collecting loans that
are past due.
C. Unethical Behavior: some employees are displaying unethical behavior.

III. Facts of the case

A. Eastern Bank is a young universal bank with competent, business-oriented, and non

politicized managers.

B. The bank has invested in state-of-the-art computerization, infrastructure, ensuring

efficient and accurate operations.

C. Eastern Bank has a dynamic human resource program, and its top and middle

managers are proactive in reviewing strategic plans.

IV. Alternative solutions

A. Eastern bank should consider consolidating redundant and

unprofitable branches to address over-expansion.

B. Implemented a comprehensive strategy for the collection of

overdue loans, including specialized debt collection agencies or flexible repayment

plans.

C. Address unethical behavior through training and strict

enforcement of a code of conduct.

V. Recommendations
A. Consolidate redundant Branches to optimize its branch network and reduce over

expansion.

B. Develop a comprehensive loan recovery strategy to address non-collection of overdue loans

effectively

C. enhance employee ethics training and enforce a strong code of conduct to address unethical
behavior within the organization.