MCBRIDE FINANCIAL SERVICES PROBLEM SOLUTION

McBride Financial Services Problem solution



McBride Financial Services Problem solution

Introduction

McBride Financial Services, Inc. is a privately held brokerage firm currently headquartered in Boise, Idaho, specializing in conventional loans as well as loans for military veterans as guaranteed by the United States Department of Veterans Assistance (VA) for home purchasing and refinancing (University of Phoenix, 2008). Under CEO Hugh McBrides leadership, McBride Financial is relatively small, but with all the makings of a large corporation; Hugh McBride has an Executive Assistant, HR Manager, IT Director, Controller, and eight brokers on staff, each of which the CEO wants to manage the eight new locations where he envisions his company expanding (University of Phoenix, 2008). Hugh McBride has met with an IT consultant to discuss his plans to offer low-cost mortgage services over the Internet, as well as partnered with a more experienced firm; Beltway Investments to act as shareholders to aid in realizing his business plan. Hugh McBride has also recently appointed members to a new Board of Directors for his company (University of Phoenix, 2008). Still at the start-up stages, however, McBrides business plan shows a lack of experience, financial planning, and ethical responsibility. This assessment will discuss alternative solutions for Hugh McBride to consider as he moves forward with his plan to expand his business, and the implementation of an optimal solution so that his companys end-state goals can be realized.

Situation Analysis

Issue and Opportunity

Identification

McBride Financial Services has current budget losses nearing $30,000 and CEO Hugh McBride is looking to expand to eight new locations. None of these new locations have been purchased yet. Real estate negotiations have not even begun. McBride wants to launch an Internet-based business, where the bulk of his plan is to offer customer service over the Internet and keep his offices minimally staffed with only a licensed broker as an office manager and a receptionist. He has hired an IT consultant, but when meeting McBride reveals he has not thought through issues of office location, office space needed, square footage, employee access, customer access, or security. McBride has also not involved his current IT Director in these meetings (University of Phoenix, 2008). Hugh McBride can take the opportunity to involve his current executive staff in more decision-making during the developmental stages of the business plan, so that he may be more open to sharing his power role with the new shareholders.

For a company to be accepted in the public arena it must meet certain federal regulatory guidelines (Chew & Gillan, 2005), so McBride has partnered with a more experienced firm, Beltway Investments to invest in his venture. His new shareholders have informed CEO Hugh McBride he must appoint a Board of Directors, so that decision-making and oversight is distributed among a group of stakeholders to ensure his company can meet SEC and SOX guidelines, as well as ensure he is meeting his new investor's budget to support the operation of eight locations. Hugh McBride does not want to yield control of ...