Cash Connection Case Analysis
Business Strategy – Section 4995 GN
Summer 2012
Case Analysis: Case #8
Cash Connection: Are Its Payday Lender Strategy and Its Business Model Ethical?
Assignment Questions:
1. What does a SWOT analysis reveal about the company’s overall situation?
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities and Threats involved in a project or in a business venture. It involves Specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. SWOT is an excellent business measure that can tell companies where they are and help them steer to where that wan to be in …show more content…
Cash connections Strengths were that they were providing a service to low income families that needed a way to get cash before the regular payday rolled around. A weakness of Cash Connection was that that most people feel they preyed upon low income families and with an average APR rate of about 520%, I’d say that would be a big concern. A couple of opportunities that Cash Connection took advantage of were overdraft protection, credit card payments, quick access to money and bill pay. Threats to Cash connection were banks and the government. As the government and banks watch what they were doing and realized the market size they had gained, they began placing federal regulations and taxes on them that greatly impacted their business. The SWOT analysis reveals many good services that Cash Connection provides to people who need quick access to cash, but it also reveals a dangerous or unethical way to make a lot of money off of already low income …show more content…
For example, these loans act as a bridge for customer to be able to pay for unexpected costs that arise before their next paycheck. This could be a repair for their vehicle which they needed to have so they could get to and from work. The book shows how they have an impact on society. It showed that 40 billion dollars worth of credit was extended to customers in 2010. And they also generate revenue for the state and federal government through employment of citizens and by leasing the buildings they operated
Summer 2012
Case Analysis: Case #8
Cash Connection: Are Its Payday Lender Strategy and Its Business Model Ethical?
Assignment Questions:
1. What does a SWOT analysis reveal about the company’s overall situation?
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities and Threats involved in a project or in a business venture. It involves Specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. SWOT is an excellent business measure that can tell companies where they are and help them steer to where that wan to be in …show more content…
Cash connections Strengths were that they were providing a service to low income families that needed a way to get cash before the regular payday rolled around. A weakness of Cash Connection was that that most people feel they preyed upon low income families and with an average APR rate of about 520%, I’d say that would be a big concern. A couple of opportunities that Cash Connection took advantage of were overdraft protection, credit card payments, quick access to money and bill pay. Threats to Cash connection were banks and the government. As the government and banks watch what they were doing and realized the market size they had gained, they began placing federal regulations and taxes on them that greatly impacted their business. The SWOT analysis reveals many good services that Cash Connection provides to people who need quick access to cash, but it also reveals a dangerous or unethical way to make a lot of money off of already low income …show more content…
For example, these loans act as a bridge for customer to be able to pay for unexpected costs that arise before their next paycheck. This could be a repair for their vehicle which they needed to have so they could get to and from work. The book shows how they have an impact on society. It showed that 40 billion dollars worth of credit was extended to customers in 2010. And they also generate revenue for the state and federal government through employment of citizens and by leasing the buildings they operated