Payday Lenders

Topics: Credit card, Payday loan, Debt Pages: 3 (814 words) Published: July 24, 2012
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 the future. (Wikipedia)

Strengths: Characteristics of the business, or project team that give it an advantage over others.

Weaknesses: are characteristics that place the team at a disadvantage relative to others.

Opportunities: external changes to improve performance in the environment.

Threats: External elements in the environment that could cause trouble for the business or project.

What does SWOT analysis reveal about Cash Connection? 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...
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