Growth in stock index is normally considered as a good sign since it implies that the investors are confident about the future prospect of the economy. It helps promote investment in the economy. However, a rapid increase in the stock market index is always a matter of concern. Stock exchange market has multiple roles in an economy. It provides companies with the facility to raise capital for expansion through selling shares, raising capital for businesses, mobilizing savings for investment, facilitating company growth and creating investment opportunities for small
The more challenging environment requires new solutions to match changing business setup and strategies. Here a company requires corporate finance advice. Corporate finance teams contributes in the well being of company by assisting company managers to take the right financing decisions in order to maximize the shareholder
Additional Risks Given Wellfleet’s New Focus Since Wellfleet began to expand its business into investment banking arm, and it recruited seasoned relationship managers and an additional senior risk officer, whose actions would produce operational risk and interest rate risk. Operational Risk Operational risk is “the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events” (Basel 2001). Romania (2010) demonstrated that the main objective is to strengthen capacity of operations, take full use of resources, not to miss any opportunity and to obtain the best interests. It can be seen that operational risk is crucial to a bank or financial institutions. It has several influential
Organizational Strategy and Objectives The foundation of Wells Fargo’s strategy is its focus on customers. The company’s strategy tends to drive the choices they make and also enable them to prioritize its efforts, differential from peers, and build a lasting value for customers, employees, communities, and shareholders. The diversified business model tends to provide the company with the stability and the strength as it assures communities and customers that it exists to serve them and also the future generations. The objectives of the company are to be the leader in financial services in areas of team member engagement, customer services and advice, shareholder value, innovation, corporate citizenship, and risk management (Wells Fargo n.d). Through the use of innovative technology, Wells Fargo aims at creating new kinds of lasting value for businesses and customers and also increase efficiency for the internal
Secondly, according to Gad (2013), he said ‘a hedge fund's investment universe is only limited by its mandate. A hedge fund can basically invest in anything - land, real estate, stocks, derivatives, currencies. Mutual funds, by contrast, have to basically stick to stocks or bonds’. Furthermore, leverage is an useful method to make more profit in hedge funds, which often use borrowed money to amplify their returns. The last characteristic is fee structure.
• Areas of product-line weakness It remains weak in investment banking when compared to its competitors. The bank is trying to make it up by strategies like the acquisition of Wachovia. It needs to use its strength in commercial lending to build up its client base in this area. • Opportunities for Wells Fargo A big opportunity for Wells Fargo is presented by Wealth management of ultra-high-net-worth individuals, institutions, families, and endowments represents. With subsidiary Abbot Downing, it has got a good start in this area and has captured a decent market share till now.
Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. The ability to enjoy economies of scale from supplies and large capital structure should also offer Barclays, a hand in increasing competition. Institutional capabilities and endowment Barclays bank has both physical and intangible resources to help it grow to a leading financial institution in its strategic plans. It has both distinctive and threshold capabilities to allow it create a competitive advantage against its rivals (Warner, 2010). Financially, Barclays was able to raise £2.3bn from a share issue.
Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect. Moreover, I would frame them as an industry that measures their success by ROA and ROE, metrics that is influenced by their ability to buy deposits and sell loans. I could give full SWOT analysis of the banking industry; however I would run out of room. Banks utmost strength is that bank lending has been a significant driver of GDP growth and employment. They are a conduit for social and economic policy.
Strengths A main strength of the research is that the results have direct application in the corporate world by finance managers. Results can help financial manages better decode on the optimal capital structure of a firm to increase shareholder value. In addition, the research has the potential to highlight key determinants of capital structure unique to the GCC. This will add to the financial literature regarding to the research area. Weaknesses There are several potential weaknesses of the proposed research.
• Provides to the profitability of companies and agencies via earnings and global income. • Builds more potent alternate ties and dependencies between countries via contracts of offerings they provide. • Multiplied unfastened alternate among nations. • Globalization leads to excessive investment stages and consequently multiplied wealth. Wealth is generated thru financial gains of