E-Trade Financial Corporation Case Study

Topics: Online brokerages, Financial services companies of the United States, E-Trade Pages: 15 (3219 words) Published: November 23, 2011




Asli Seven

Nazir Emre Adir

Shamla Tsargand

Lecturer: Andrejs Chirjevskis

Autumn 2011

Question 1.Revise E-Trade Vision and Mission Statement.Develop a SWOT anaylses.

When we have a look at E-Trade’s vision statement, we see that they emphasize on self-directed investors and the world market. For the company being reachable from even sitting at home is important. They say “It’s about bringing it home.”Accessebility in anywhere in the world is the main point about the avaliabilty. But there are some missing points in the vision statement. From our point of view the vision statement could be revised as below:

“To empower self-directed investors to make the information avaliable all over the world by using an integrated technology in order to let them control their financial future anytime and be able to reach to world’s major investments markets.”

When we look the E-Trade’s mission statement, we see that they emphasize on the usage of technology to set the standard for innovation, service, and value for investors seeking more control over their investments. E-Trade’s rich suit of products and services can be customized to reflect a customer’s unique needs and interests, including portfolio tracking, free real-time quotes, market news, and research available 24 hours a day, seven days a week. Customers can access their E-Trade accounts virtually any time anywhere around the world.If we would like to revişe E-Trade’s mission statement:

“To establish long-term shareholder value through superior performance driven by the delivery of a diversified range of innovative , customized service to reflect customer’S unique needs and interests and supported by a strong culture based on achieving highest level of teamwork, efficency and integretiy.”

Here is the SWOT analysis of E-Trade Company:


|STRENGHTS |WEAKNASSES | |*Strong operating record |*Loss of some foreign markets | |*Over 4.5 million clients |*Decline in operating income | |*Strong position in the market |*Weak net revenue growth | |*Improved management of costs |*Decline in interest income | |*High brand recogination | | |OPPORTUNUTIES |THREATS | |*Growth options in new markets |*Incresead competition | |*Outsourcing of technologhy development |*Reduced spreads | |*Possibility of aqusaiton of a brokerage company |*Client banckrupctys |

Question 2. Could E-Trade be more effectively structured? Recommend an improved organizational structure from the chart provided in the case. Support your proposed new structure.


E-Trade using a Functional structure:

It is cheap model of company structure which is good for crises times.

Advantages of the model: Chief executive in touch with all operations, reduces/simplifies control mechanisms, clear definition of responsibilities, specialists at senior and middle management level.

Disadvantages: Senior managers neglect strategic issues, co-ordination between function difficult,...
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