Dr. Philip Friedman
Business Administration Capstone – BUS 499
Conduct an External Environmental Analysis, and identify key environmental forces that have immediate strategic implications for Capital One. The key environmental forces that could have immediate strategic implications for Capitol One in my opinion will stem from the following segments; Sociocultural, Political, Economic. To date the economy isn’t in good condition, people are being laid off, companies are going belly up, and families across the nation are being kicked out of there homes by the very companies that are responsible for the state of the economy. Despite the very well known troubles the middle class faces bill collectors do not let up, regardless of years worth of on time payments and loyalty. With legislation becoming involved recently in tactics utilized by credit card companies new laws have been passed reflecting a growing discomfort amongst the public. Early in 2005 The Minnesota state attorney general’s office had sued Capital One, claiming it is misleading consumers with promises of “fixed“ interest rates, then hiking their rates as much as 400 percent (Sullivan, Bob. 2005. Capital One sued over marketing practices. Para1). This situation alone ties in the above mentioned segments. People are tired of it, especially anyone who has had to deal with the misfortune. You learn quickly who most concerned about the customer. The economy is bad; the people are feeling powerless, abused, and uneasy. That’s bad business. I think that people are going to be very selective as to who they create financial relations with from here on out. Who ever respond most ethical with true flexibility will win out in the end in market share. It’s my belief that the mass has begun to do their home work on who is who and what is what, it’s about time. I was laid off in 01/2010 and have learned what companies actually treat you well in the...
References: Hitt, M. A., Ireland, R. D., Hoskinsson, R. E. (2009). Strategic Management: Competitiveness and Globalization, Concepts and Cases. Cengage Learning, Mason.
Sullivan, Bob. 2005. Capital One sued over marketing practices. Retrieved on 3/2/2010 from: http://www.msnbc.msn.com/id/6781155/ns/business-personal_finance/
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