Saturday, October 19, 2019

Analyzing and Writing Cases Article Example | Topics and Well Written Essays - 2000 words

Analyzing and Writing Cases - Article Example In general, the selection of strategy consists of a number of approaches. In organizational context, the choice of the approach relies on several factors such as the current situation of the company, the resources of the company, competencies and policies of the organization, risk tolerance potential, internal clashes, extent of external reliance and expected competitive response among others. With due consideration to these factors, the alternative strategies that have been recommended for Edward Jones comprise of a combination of expansion as well as product development strategy. The present day business environment is altering continuously due to the inclusion of new entrants, the development of substitutes and enhanced performance of competitors and so on. As a result, Edward Jones might require discovering ways to mitigate threats from rivals and ascertain that is benefits from its persistent customer loyalty. Some of the organizational strategies to consolidate the business cou ld be enhancing the product or service quality, building better associations with customers so as to understand and meet their needs efficiently resulting in augmented customer loyalty. External Assessment The financial services industry functions on the principle of the trade-off between risk and return. The retail brokerage industry had made it possible for individual investors to invest in various financial securities, for instance stocks and bonds. This industry has evolved over the years and many factors such as increase in the worth of stock market, advent of technology and internet, increasing need of individuals to save for their future as a result of rise in the life expectancy level and rising expenses have contributed towards its rapid growth. Due to the rising competition in the market, diversification of investor needs and the increasing expectations of the customers, the retail brokerage industry primarily focuses on customer service. There exists a high level of conve rgence in the retail brokerage industry, which permits the companies to bundle their products as well as offer discounts. The rationale behind the convergence is that it is more cost-effective to cross-sell products. Moreover, the consolidation of the products results in shared information technology and elevated switching costs and acts as a major opportunity for the industry participants. The retail brokerage industry is highly correlated with the stock exchange market. The increase in the value of stock markets across the world has provided the industry with immense growth opportunity and would continue to do so. With the rise in the number of individual investors looking forward to make investments in various types of financial assets, the industry has huge growth potential. Though the industry has immense growth potential, the risky business practices that are the part of financial services organizations could bring about a stock market slump and adversely affect the retail bro kerage industry. This is a major threat that the retail brokerage industry has to encounter. The instances of focus on short term benefits is more in the financial sector, as the managers of such organizations want to please their stock holders by providing them superior immediate returns. However, in doing so, more often than not the managers ignore the long-term sustainable

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.