Business Analysis Part-1 William S. Rivers Mgt/521 November 17, 2011 Jeff Jordan Business Analysis Part-1 The subject of this paper is to illustrate the decision-making process of a mutual fund manager in reaching a decision concerning whether or not to invest in Bank of America. The first step in the decision-making process is to conduct strengths, weaknesses, opportunities, and threats (SWOT) analysis of the company. The SWOT analysis is a concise tool presented in the form of a simple matrix that can facilitate the decision-making process of companies and investors. The simplicity of the matrix allows for ease of explanation of the final decision of whether or not to invest in the company by the mutual fund manager. The subject of the paper then moves to Bank of America’s internal and external stakeholders.
In May 1997, CUC International, Inc. and HFS, Inc. merged to form one giant service organization, Cendant Corporation. While investors seemed excited for this large merger, it was soon announced that a large financial reporting fraud was announced that would affect CUC’s financial statements. There were several factors that existed at CUC before the merger that allowed for an environment conducive for fraud to exist. First and foremost, the upcoming merger with HFS created the pressure at CUC to provide strong financial statement performance. In combination with this, upper management pressured employees at every level to participate in shady transactions, with one employee even testifying that he thought he was simply “doing his job.” Also, it was determined during investigations that CUC had weak internal controls for a company of its size.
In 2011, they gained the title of the world's largest automaker by trading the highest number of units in vehicles (General Motors, 2012). This paper discusses business and corporate level strategies of General Motors. It will also discuss the competitive environment of the company and analyze its strategies. The strategies of General Motors will be analyzed on the basis of suitability factors. Business strategy is defined as a course of action of a company that it uses to face competition from its rivals in a given industry.
Ethics play a role in everyday business. Company executives attempt to build a profitable organization but unethical decisions lead to the demise of organizations because of greed and power. Penn Square Bank and Dow Corning both made decisions in their business that started out making millions of dollars but in the end cost the companies more than possibly imagined. Because of the unethical decisions made by both companies they acquired large losses of money by one filing bankruptcy, and the other closing down. Not only were there large losses of money for both companies, but the loss of reputation as well.
The Stock Market Crash, which coincided with the Great Depression, allowed for further suffering, especially great financial toil. Bentley and Ziegler sum up the accounts of misery well, stating that the “stark, gloomy statistics…do not convey the anguish and despair of those who lost their jobs, savings, homes, and often their dignity and hope” (Bentley-Ziegler 988). Similarly, Harman adds, “The slump tore apart the lives of those who had been
The company still went public even though the management was aware of their losses. They needed new business strategy that will be a source of revenue for the company. After the internet bubble “burst” it became obvious that NextCard was deceiving investors and other stakeholders. The Feds were able to uncover the fraudulent accounting practices used by the audit team of NextCard. Given PCAOB oversight of accounting firms and the AICPA Code of Conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity.
That means pitching checking-account holder’s new mortgages, mortgage holder’s new credit cards and card holder’s new bank accounts. Wells recently said it sold customers an average of 5.7 different products, up from 5.47 a year ago. But that success has come at a cost. The relentless pressure to sell has battered employee morale and led to unethical breaches, customer complaints and labor lawsuits. To meet quotas, employees have opened unneeded accounts for customers, ordered credit cards without customers' permission and forged client signatures on paperwork.
The first area is Global Retail and Commercial Banking (GRCB) which supports companies that conduct business internationally or are based out of the United Kingdom and have a presence overseas. According to the Barclays Commercial website (2009), the GRCB operates in and supports more than 20 countries. The next area of business is the Investment Banking and Investment Management (IBIM) and this area offers financial planning services as well as stockbrokers to assist customers. Barclays’ financial planning services also assist with retirement accounts and inheritance planning. The Barclays Stockbrokers are the “UK’s No 1 Stockbroker, offering one of the widest ranges of investment products on the market (Barclays Investments, 2009).
Goldman Sachs vs. U.S. Treasury Bond Goldman Sachs is one of the many investment banks in the U.S. that help companies and governments raise money in securities underwriting as well as provide advice on transactions dealing with mergers and acquisitions of corporations. Investment banks also provide advisory services to high net worth investors as well as broker/dealer operations. Investment banks in the United States hold a market share of 51 percent (even though that share has dropped recently.) However, Goldman Sachs is the leading global investment bank in the world. Their company falls into three categories: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services.
Although the near-collapse of AIG was significantly influenced by “soured trades entered into by the company’s Financial Products division,” the operations of other AIG units, such as the financial gambles of its Investments unit, helped cripple the company as well. Rapidly mounting financial losses had been occurring in the Financial Products unit for some time. Consequently, AIG decided to unwind the business and shut it down. In early 2008, employees in the unit were asked to remain with the company through the shutdown and, essentially, to work themselves out of a job. To entice talented employees to stay and work, a contractual retention bonus plan was instituted.