16 Outline two possible ways ALB can try to reduce its costs. [4]

[BASEL Moderator]

ALB is a large bank. It has 300 branches and 5 000 employees. ALB provides a range of financial services to its business customers. As it operates in a competitive market, ALB aims to maintain customer loyalty. Last year ALB’s profit decreased to $3 000m. The Managing Director is analysing ways to reduce ALB’s costs. She also has to decide how new legal controls over employment issues might affect the business. The Government plans to improve protection of employees by changing laws on the minimum wage and health and safety.

16 Outline two possible ways ALB can try to reduce its costs. [4]

Possible KN Points:
• Reduce number of employees
• Close number of branches
• Reduce amount of wastage