Charles Schwab

Topics: Stock broker, Financial adviser, Revenue Pages: 6 (963 words) Published: March 11, 2013
Title: Charles Schwab in 2008
Name: Gingco, John Mar N. February 05, 2013 Executive Summary
Charles Schwab is a son of an assistant district attorney in California. He sttudied in Stanford University where he received degree in economics, which was followed by an MBA from Stanford Business School. In 1971, he set up his own stock brokerage firm, First Commander which was later on changed to Charles Schwab and Company Inc. At first, his company was a conventional brokerage that charged clients fixed commissions for securities trades. Over the next 25 years, the company experienced strong growth, fueled by a customer-centric focus, savvy investments in information technology (IT), and a number of product innovations, including a bold move into online trading in 1996. Purpose

To find out how Charles Schwab reverse the decline in revenue and profit of his brokerage company and attain its goal of 20% a year revenue growth and a profit margin greater than 12%. Statement of the Problem

During the year 2000, Charles Schwab and Company felt the negative effect of the slowdown in the US economy. Schwab’s revenue, net income and stick price were all declining. Methods of Analysis
1. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis 2. Porter’s Five-Forces Industry Attractiveness Analysis
Alternative Courses of Actions
Disney needs to encourage managers of all its businesses to continue innovation by giving more value to their perspectives on how to improve their respective operations. 1. Entertainment and Recreation

Disney needs to offer more kinds of attractions and rides inside existing theme parks. 2. Motion Pictures and Home Videos
Disney must focus its resources in producing low cost but quality movies wherein the whole members of the family can watch it together and not just the children which was there main target audience before. 3. Consumer Products

Disney needs to sign in more licensing partners to increase its distribution channels. Recommendation
Robert Iger must promote an increase level of innovation by implementing a decentralized approach in management. Disney needs to empower top managers of its businesses in order to achieve a company-wide growth. Outline of the Action Plan

Increase profitImplement a decentralized management approach Year1- stop Disneys falling profit Year 2- increase Disneys profitMoney and Management skillsUpward trend in revenue and profit

Porter’s Five-Forces Industry Attractiveness Analysis
Industry ForcesHighMediumLow Why? 1. Threat of New Entrants
a. Economies of Scale
b. Brand Equity
c. Capital Requirements
d. Switching Cost of Buyers
e. Government Regulation
f. Retaliation

The Threat of New Entrants is low because for a new business to compete, they need to be able to have high levels of production and a large Capital. 2. Bargaining Power of Buyers
a. Number of Buyers
b. Switching Cost
c. Threat of Backward Integration
d. Buyer’s Profitability
e. Contribution to Quality
f. Product Differentiation

Bargaining Power of Buyers is quite low because the market is large and increasing. There is also consumer intimacy due to original cartoon characters thats why buyers are unlikely to change patronage. 3. Bargaining Power of Suppliers

a. Number of Suppliers
b. Availability of Substitutes
c. Importance of Customer to the Supplier
d. Product Differentiation
e. Switching cost of Buyer
f. Supplier’s threat of forward integration

Bargaining Power of Suppliers is high because the number of suppliers is large and product differentiation is high due to the existence of licensed original products. 4. Threat of Substitutes
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