MBA 580 Week 2 - Forces and Trends 1 Workshop 2 Forces and...

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Forces and Trends 1 Workshop 2 Forces and Trends Paper Forces and Trends Paper Economic trends impact the financial industry environment and therefore, must be understood by companies. The relevance of the economic trend is to aid the company with understanding such factors as consumption pattern changes that are affected by the relative affluence of various market segments (Pearce & Robinson, 2005, p. 79). The Bank of New York Mellon Corporation (Ticker BK) is a global financial services company and is the leader in asset management and securities services (BNY Mellon, 2008). The financial services industry is a major part of the United States economy and New York is considered the center of the US financial system (EIU Country Intelligence, 2008). The Bank of New York Mellon’s strategic adaptability for the economic trend is to consider the level of disposable income and the prosperity of people to spend as well as other economic factors such as interest rates and inflation rates. With the stock market being down as a result of a slowdown in the economy in 2007 many investors are now investing in bonds because they are safer to gain returns and the risks are lower therefore, The Bank of New York Mellon (BNY Mellon) will need to evaluate
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Forces and Trends 2 these factors when new products are released so that they will meet market demands. Bond purchases are expected to increase 5.4% from 2007-2011 (EIU Country Intelligence, 2008). The US financial services sector has enjoyed a period of exceptionally strong assets and profit growth but in 2007 there has been a significant reduction which is weighing on financial institutions and the products and services they offer. The slowdown is due to the sharp downturn in the housing market and problems with sub-prime mortgages that lent borrowers money that had poor credit. BNY Mellon will need to perform environmental scans and make adjustments throughout the year to remain competitive by being knowledgeable on significant issues and competitor products. The environmental scans should include reviewing economic trends that will affect investments at BNY Mellon. Demand for personal investment products has been down due to the recent decline in equity prices but consumer savings in retirement pensions as remained robust (EIU Country Intelligence, 2008). Competitive forces impact the financial industry environment with such driving forces as
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MBA 580 Week 2 - Forces and Trends 1 Workshop 2 Forces and...

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