Final Industry Analysis Paper

Provide customers with hands on help with their

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Provide customers with hands on help with their investments and other banking needs. 24
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Citigroup Problem Solution Shares down Citigroup’s share price has steadily dropped. In order to increase the share price, Citigroup needs to report higher earnings in the next couple of quarters. Citigroup needs to create measures to raise revenues like investing in new companies and markets SEC Settlement Citigroup wanted to settle with the SEC over the sale of bad mortgage debt. A federal judge stuck the settlement down because Citigroup would not have to show their financial information to understand why there was the selling of toxic mortgage. Citigroup is expected to be in court in July. As of now, the only thing Citigroup can do is make sure that they have all of the factual information needed in court to argue their side. Job Cuts Citigroup has cut jobs because of their slumping revenue. In order to stop with the job cuts, Citigroup needs to raise revenue. They need to create cost cutting measures other than job cuts to keep their existing jobs. Cost cutting measures could include office supplies and the pay of employees. Top Three Issues Facing the Financial Services Industry Problem Solution Managing During Regulatory Change New regulatory changes are occurring. Financial Services companies have to change the way they operate because of more stringent regulatory methods Financial services companies should hire employees that are experts on these new regulatory changes. These employees will keep a tab on the companies business practices to make sure that the company is following all of the regulatory changes 25
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Generating Growth in a Challenging Economy Although the economy has hit a rough patch, it is up to these financial services companies to keep revenues high for shareholders. In order to keep revenues high, companies need to make sure that they are keeping operating cost low. They also should make sure they are not spending money on any superfluous activities. Also by following the new laws, companies will make sure they will not be sued by the government or customers, thus saving money. Changes in Societal Relationship Patterns Consumers want banks to be more personal and efficient. In order to keep customers, banks need to honor and work to satisfy their customers needs. Banks need to hire consumer experts to look at the societal trends of consumers. They also need to make their companies more personal o Easier to navigate website o Friendly employees (that interact with customers) o Complaint hotline SWOT Analysis of the Top Three Companies JP Morgan STRENGTHS Global leading financial brand name Strong retail distribution network High asset quality Capital strength WEAKNESSES Subprime exposure Overdependence on U.S.
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  • Fall '12
  • Ashley
  • Financial services, .........

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