What’s in a Name Change: Benefit or Obstacle to Growth? 

Authors
Robert J. Tokle, Alexander Bolinger, C. Shane Hunt
Region
North America
Topic
Accounting & Finance
Economics
Length
9 pages
Keywords
rebranding
credit unions
marketing strategy
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

Idaho State University Federal Credit Union (ISU FCU) was founded in 1952 to serve ISU employees. By 2020, ISU FCU had grown into a mid-sized credit union operating seven branches in four cities in eastern Idaho. However, members of ISU FCU’s executive team had begun to question whether having “Idaho State University” in the name could hinder the future growth prospects of the credit union in an increasingly crowded and competitive market. This is a decision case in which students are asked to consider both the advantages and disadvantages of changing a credit union’s name in recommending whether or not ISU FCU should proceed with changing its name. 

Learning Outcomes

Upon completion of this case, the student should be able to:
1. Explain the microeconomic concept of economies of scale.
2. Explain how economies of scale can affect the organizational growth objectives of credit unions.
3. Analyze the potential benefits and risks of credit union name changes/rebrands.