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  1. 1. CONSULTING RECOMMENDATIONS TO KEYCORP
  2. 2. Team #1 JD • Rick Amburgy • Mindy Badovick • Steve Bannen • Nick Benko • Graham Blackwell
  3. 3. Outline for Presentation • Key’s Present Status • Re-Organizing Web Page • Expanding Personal Finance • Refocus Target Market • Attracting Employees • Continue Rightsizing • Can KeyCorp Compete? • Conclusion
  4. 4. Key’s Present Status • The Financial Services Act of 1999 allowed Key to offer all forms of financial services and expand into other countries. • Reached a 52 week low of $18 per share on 2/14/00. • Key banks are found in 13 states, 2600 A.T.M’s and have www.key.com as website.
  5. 5. Re-Organizing Web Page • “KeyBizz” Spin-Off – Used to make the main web page clearer and to be more convenient to the customer. – Focus on small business and corporate markets. – Better for promoting new products for both services. – Loss money at first, but in the long run will quickly create more profit.
  6. 6. Expanding Personal Finance • Adding online trading would be a very valuable investment to KeyCorp. – 5.1M people were trading online in 1999. – Added convenience to customers. – Examples of how this has worked: • Merrill Lynch stock rose almost 10% after adding this feature.
  7. 7. Expanding Personal Finance • Adding an E-Wallet would also help KeyCorp look more attractive to customers. – Will help bring in more customers thus increasing profits for KeyCorp. – New income from the interest of this card. – Examples of other companies success with this: • American Express stock rose by 30%.
  8. 8. Refocus Target Market • With the present target market aging, these new technological changes will be better suited for the younger generations. • This group will need to start planning for their future. • They will feel more comfortable with the Internet and want to do all their errands from one place.
  9. 9. Attracting Employees • Top MBA students are going towards Internet companies rather then the traditional company. • KeyCorp needs to start enacting new rules that will be more attractive to future employees. – Allow “dress down” days. – Allow employees to make their own hours.
  10. 10. Continue Rightsizing • Key has already started rightsizing and plans to decrease work force by 11% in 2002. • Continue this by eliminating insurance services. – Very poor service, makes little money. • Adding online trading will allow rightsizing of McDonald Investments.
  11. 11. Can KeyCorp Compete? • Even with changes it will be difficult to compete with “Superbanks.” • Analysts predict that someday there will be only a handful of banks in U.S. – Canada has only 7 or 8. • Key does not have the financial resources to compete with “superbanks.” – Should consider being acquired to aid investors and company’s survival.
  12. 12. Conclusion • Key’s stock prices have been dropping. • The board of directors should strongly consider our recommendations. • Changes will minimize weaknesses and make it more attractive to companies looking to buy KeyCorp thus causing raising stock prices.

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