Team #1 JD
• Rick Amburgy
• Mindy Badovick
• Steve Bannen
• Nick Benko
• Graham Blackwell
Outline for Presentation
• Key’s Present Status
• Re-Organizing Web Page
• Expanding Personal Finance
• Refocus Target Market
• Attracting Employees
• Continue Rightsizing
• Can KeyCorp Compete?
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
• Key banks are found in 13 states, 2600 A.T.M’s
and have www.key.com as website.
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.
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
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%.
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
• They will feel more comfortable with the Internet
and want to do all their errands from one place.
• 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.
• Key has already started rightsizing
and plans to decrease work force by
11% in 2002.
• Continue this by eliminating insurance
– Very poor service, makes little money.
• Adding online trading will allow
rightsizing of McDonald Investments.
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.
• Key’s stock prices have been dropping.
• The board of directors should strongly consider
• Changes will minimize weaknesses and make it
more attractive to companies looking to buy
KeyCorp thus causing raising stock prices.