Mba 671 Cash Connection Discussion Case Questions 2012

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  • Topic: Credit, Debt, Payday loan
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Benedictine University
MBA 671 – Strategic Management
1. What is Cash Connection’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fits the competitive approach that Cash Connection is taking? Cash Connection’s strategy is differentiating itself from other competitors to gain the largest share of the lending industry, while still meeting customer’s needs and following government regulations and restrictions. Cash Connection is taking to broad differentiation strategy. Allen Franks, Cash Connection's president, seeks to create a competitive advantage by incorporating attributes and features that buyers consider his services more valuable. Successful differentiation will allow his firm to increase sales and increase brand awareness. Since the market is diverse, Cash Connections has the ability to broaden its horizons through the use of differentiation.

2. What evidence suggests that Cash Connection’s strategy and business model are ethical and beneficial to customers and to society at large? What evidence suggests the company’s strategy and business model are neither ethical nor beneficial to customers and that the entire payday lending industry has few if any redeeming qualities? There are many evidences suggest that Cash Connection’s strategy and business model are ethical and beneficial to customers and to society at large. I find the principle of extending short-term loans help the borrows in need since the 18th century, much of the pioneering credit for making microloans to cash-constrained people living at or near the poverty level, help them to create their own fledging business enterprise. Such microloans for cash-constrained entrepreneurs would allow borrowers to become self-supporting and, ideally, to build sufficient wealth to exit poverty. 3. What are the dominant economic characteristics affecting the payday lending industry? A barrier to entry was the level of industry competition. Large...