Chase Bank
Transcript: High capital requirements Government regulation Economies of scale Brand recognition/Customer Loyalty Industry Trends Medium-High End result is a unique product: Increase revenue for partners Save customers money (Increased Goodwill) Increase revenue for organization while decreasing cost Improved marketing capabilities and statistical analysis Improved image --Leader in innovation, save members money, etc Differentiation est. 1905 Revenue:US$ 102.694 billion Assets: US$ 2.118 trillion Create smaller, more personal branches Provide extensive training for MSRs and auditors (Cross-selling and Audit) Create foreclosure document execution policies and procedures Use social media to educate Leverage large consumer base information for more focused advertising Target younger audience to create brand loyalty Inbound – Capital Structure, Alliance Partners, Regulatory Agencies Operations – Deposits, Payment processing, Loans, Credit Cards Outbound - Branch Store, Telephone Banking, ATM’s , Mail Marketing/Sales - New Accounts, Branding, Cross Selling, Public Relations Service – Banking/ Investment products, Business/Wealth Mgt Services, Lobby Services Firm Infrastructure - Asset/Liability Mgt, Risk Mgt, Strategic Planning HR - Recruiting, Training, Performance Management, Incentives Technology – CRM, Operations efficiencies, Positioning Procurement – Strategic Sourcing, Vendor Selection Recommendations External Analysis O High Washington Mutual Chemical Bank Supplier Power Plethora of suppliers Cost relative to total purchases in industry is high Importance of sale to supplier Clearing houses (low-medium) Bank of the Manhattan Co. second largest bank by market capitalization 6335 Retail branches 12,000 ATM's 280,000 employees merged 1961 Internal Analysis Have good corporate responsibility Serve consumers and institutions Developing Communities Global Philanthropy Being Diverse Being aware of environmentally impact Competitive Rivalry ARENAS – Currently active across the United States. About 5,100 branches nationwide. Target Market is consumers and businesses. VEHICLES – Subsidiary of JPMorganChase. Merged with JP Morgan in 2000. Merged with Bank One Corporation in 2004. Bought out Washington Mutual in 2008. STAGING – CHASE will expand wherever it feels it will benefit their customers. Plan on being very aggressive in adding additional branches in the next 3-5 yrs. DIFFERENTIATORS – State of the art financial capabilities via technology. Very convenient for those on travel. Offer various Checking Services, Free Mobile Banking, etc. ECONOMIC LOGIC – One of their many sources of income comes from the financial service that they provide. Political/Legal Segment Antitrust laws Bank Merger Act of 1960 Bank Holding Company Act of 1956 Sherman Antitrust Act of 1890 Clayton Act of 1914 Deregulation Gramm-Leach-Bliley Act Technological Segment ATM Online banking Mobile banking Global Segment Diverse clientele Operate in multiple countries acquired 2004 J.P. Morgan & Co. Use extensive network of partners to generate additional revenue to offset losses due to government regulations Chemical Bank Be at the top of its category by offering excellent consumer and business banking services : (Home , Auto, Education finance, Commercial real estate, and business credit). Achieving Operational Excellence by : keeping a strong balance sheet during good and bad economic times, and implementing the best operations systems. Maintaining great working teams by : hiring, training and retaining employees with great ethical mindsets and offering great incentives in exchange for good performance. merged 1986 Very High Use social media to advertise, therefore lowering marketing expenses Buyer Power Low switching cost Brand identity Price Sensitivity Low Product differentiation merged 1995 Major Objectives General Environment est. 1799 Texas Commerce Bank Bear Stearns & Co. est. 1873 Brenda Davila Anthony Ochoa Carlo Fernandez Mauro Martinez Mark Khan Alternative Strategies Revenue: $85.210 billion Assets: $1.258 trillion General Environment Chase National Bank of the City of N.Y Develop policies and procedures for a more stringent loan screening process Questions Trouble differentiating from others Expensive advertising expense/average effectiveness. Technological advancement = Security concern Weak screening/oversight Less traffic in branches Government regulation Bank One Support Activities Chase Manhattan Bank 5 Elements of Strategy S S-O W-O Strategic Issues & Problems Hanover Bank Buyer inclination to substitute High number of credit unions/small banks International banks Investment groups Self merged 1991 est. 1823 Bank of America is the 5th largest company 6100 Retail branches 18,700 ATM's 288,000 employees Threat of New Entrants Take advantage of mobile trend Research/Develop/Implement Near Field Communication Technology (NFC) Phase out credit/debit cards Decrease overhead Offset possible loss from government regulation(s) Track purchase