Harvard Case Ameritrade Essays

Harvard Case Ameritrade Essays
Spring 2010
Ameritrade – Harvard Case Study
Background:
Ameritrade Holding Corporation is securities brokerage services and technology–based financial services firm
from the United States. The company was founded in 1971 and is headquartered in Omaha, Nebraska.
"Ameritrade MERITRADE for self–directed retail investors; TD AMERITRADE Institutional that provides
brokerage and custody services; trading platforms that enables research and analysis; a suite of education
products and services for stock, option, foreign exchange, futures, mutual fund, and fixed–income investors;
Amerivest, an online advisory service that develops portfolios of exchange–traded funds to help long–term
investors pursue their ... Show more content on Helpwriting.net ...
|
|ETFC = E*TRADE Financial Corporation |
|Pvt1 = FMR LLC (privately held) |
|Industry = Investment Brokerage – National |
|1 = As of 2008 |
Because Ameritrade gets most of its revenue from transactions and interest will mean that we will need to find
companies in the industry that have similar revenue streams. This also means that Ameritrade's revenue should
be very sensitive to the movement of the market. It is also important to note that since Ameritrade's revenue is
sensitive to market fluctuations we will have to forecast how it will react in situations where the
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The Remote Environment : Remote Areas Are Economic,...
The Remote Environment The remote environment includes situations that occur that can be threats or can
cause a change to happen to a specific business or industry. The five remote areas are economic, social,
political, technological and ecological (Pearce J. & Robinson R, 2013). A business should be aware of these
factors and they can impact or change the business.
Economic
The United States has been experiencing a six–year bull market that started in 2009. The longer a market rises,
the more dangerous it becomes (Grealish, 2015). As investors tend to buy up stocks that have performed well,
they can experience high profit, but also a high risk. Raising prices increases risk, and can lead to lower returns
on the investment (Grealish, 2015). It is recommended that investors sell off their stocks once they have reached
their expected profit. Rebalancing a portfolio is important so that you do not find yourself holding onto stocks
that take a quick dive and the investor loses profit. This technique is referred to as "selling high, buying low"
(Grealish, 2015). The fully invested person, will most likely have two things happen:
1. When the market tops out, they will be caught fully invested, and pay a heavy price.
2. They will know when to sell their stocks, so they'll avoid serious losses (Grealish, 2015).
On Thursday September 17, 2015 the Federal Reserve will decide if the U.S. economy can handle higher
interest rates. The Standard & Poor's 500 Index slipped 0.4%

Japan Net Bank: Japan‚Äôs First Internet-Only Bank
15th Bled Electronic Commerce Conference eReality: Constructing the eEconomy
Bled, Slovenia, June 17 – 19, 2002
Japan Net Bank:
Japan's First Internet–Only Bank – A Teaching Case
Ali F. Farhoomand
Centre for Asian Business Cases, University of Hong Kong,
Hong Kong
Ali@business.hku.hk
Vincent Mak
University of Hong Kong,
Hong Kong
VincentMak@business.hku.hk
Abstract
Japan Net Bank (JNB), Japan's first Internet bank without physical branches, began operation in October 2000.
It attracted mainly young customers looking for convenient, round–the–clock bank services with much more
competitive interest rates and transaction charges than traditional Japanese banks. Its access channels included
the mobile Internet service ... Show more content on Helpwriting.net ...
He also worked at the Sakura Research Institute, where he founded and headed the "Center for Aging and
Environmental Studies".
1
US$1=¥120
2
Kakuchi, Suvendrini (2001), "Economy–Japan: First On–line Bank takes on financial giants,"
Interpress Service, 25 January.
673
Ali F. Farhoomand, Vincent Mak
2.1
Stakeholders
At the time of JNB's launch, Sakura Bank, as the major stakeholder, owned 50% of the shares, with Sumitomo

Bank, Fujitsu and Nippon Life Insurance each holding
10%. Mitsui & Co., NTT East, NTT DoCoMo and Tokyo Electric Power each held
5% of the shares. After Sakura and Sumitomo Banks merged on 1 April, 2001, to become Sumitomo Mitsui
Banking Corp. (SMBC), the major stakeholder of JNB was SMBC, with a 60% stake [see Exhibit 1 and Exhibit
2].
2.2
Business Principles
JNB was one of the core Internet businesses of parent company SMBC – 80% of its full–time staff were
transferred from SMBC. However, it aimed to build up its own, independent brand name and aspired to become
the de facto standard of the
Japanese–style "Internet Specialised Bank" for the 21st Century's Internet community. Miyai put forward as the
guiding vision of JNB's business the
"customer–centric" principle, i.e., the Company and its services should be focused on customer satisfaction. He
said:
In the Internet world ... customers should be treated better than in the actual world. ... We, as a company, have to
seriously adopt

The Economic, Political And Social Impacts Of Andrew...
American history was shaped by economic, political, and social influences. At the economic front there were
many leaders in all different industries; however in the railroad and steel business there was one clear leader,
Andrew Carnegie. He forever shaped the way American businesses would operate and became one of the
richest men in America. Andrew Carnegie was a Scottish immigrant who worked numerous jobs in the steel and
railroad industry trying to support his family. Through these jobs he gained multiple connections and
knowledge, things that would further him in his career later in life. Carnegie often had to rely on the opinions of
his upper level management when problems from the company arose, one of his most respected managers, and
senior associate, was Henry Clay Frick. Henry Clay Frick was from Pennsylvania and was born to a wealthy
family, at age 19 he began doing some work for his grandfather in the miller business, this would led to him
eventually opening up his own coke business, which was called Frick Coke Company. Both Carnegie and Frick
were wealthy, influential businessmen, however Carnegie had the ability to make his business flourish despite
all the hard times he had faced. Andrew Carnegie made his place in history by creating one of the most
successful steel companies ever, he also owed his success to the great relationships and managers he had, and
despite his unsteady relationship with Frick, the two managed to beat every obstacle the company faced.

Common and Preferred Stock
Intermediate Acct410B
Research Paper
Common and Preferred Stock
How do Corporations raise capital? All of the large corporations could not have grown to their present size
without being able to find innovative ways to raise capital to finance ultimate expansion. There are many ways
this can be accomplished, but this review will take a look at just two ways: the issuance of Preferred Stock and
selling of Common Stock. What exactly is a stock, anyway? Basically, stock is ownership, simple as that. Buy a
share of APPLE Inc. and acquire a tiny sliver of the computer giant, tying the investments fate to that of the
Chairman, for better or worse. This is ownership in the most literal sense: You get a piece of every desk,
contract and ... Show more content on Helpwriting.net ...
In contrast to a Common Stock, a company may choose to issue Preferred Stock to raise capital. Preferred Stock
represents a hybrid in the sense that it is an equity interest with certain features resembling debt. Buyers of these
shares have special status in the event the underlying company encounters financial trouble. A typical preferred
shareholder doesn't vote on the composition of the company's board or other matters. They are more interested
in receiving regular dividends, since these dividends do not fluctuate based on the company's profits; each
preferred shareholder is entitled to a fixed amount at certain periods, just so long as the company has the money
to do so. Dividends are, also, paid to preferred stockholders before they are paid to common stockholders.
Preferred stock is issued with a specific dividend rate. The dividend rate may be stated as a dollar amount or as
a percentage of the par value. When dividends are paid, preferred stockholders are paid the amount applicable to
their class of preferred stock. Several advantages to issuing preferred stock include: no dilution of
management's interest in corporate growth or in voting power (if non–voting preferred stock is issued), and
predictable dividend payments and preferences upon liquidation (for which investors may pay a premium).
Although, disadvantages include: a

Corporate Training Evaluation Process Opportunity
Section I – Corporate Training Evaluation Process Opportunity The financial retirement industry relies on the
professional education level of their employees to offer effective and efficient assistance to its clients with an
ethical responsibility of accurate and complete financial reporting (Arthur, Wolfe, & Staley, 2005). This requires
a significant amount of training to become proficient with the systems and very knowledgeable of the guidelines
and rules associated with transactional changes that are allowed that must also extend to leadership proficiency
and growth (Arthur, Wolfe, & Staley, 2005). According to Gomez (2003), evaluations of corporate training
programs within the financial recordkeeping industry focus on participant reactions and the attainment of the
training objective with little to no evaluation of changes to on–the–job performances or organizational
improvements. A truly effective evaluation program has an ethical responsibility to address the seven main
codes of ethics which includes accountability, conflict of interest, disclosure, integrity, personal conduct,
protection of privacy, and social responsibility (Chow, 2001). The need to be competitive to survive is just as
important as the ethical responsibility of the organization. According to Peak (as cited in Savery & Luks, 2004),
"research shows that there is a distinct correlation between increased training budgets and improved
productivity and operating profits reinforcing the "common wisdom"

Leadership Is The Essential Part Of Being A Successful Leader
Leadership is the process by which one individual influences the behaviors, attitudes and thoughts of others.
Leaders' help others see what lies ahead and rise to the challenges. Leaders also have important characteristic
traits that separate him from the followers. Such traits are what define a leader, and are what make them such an
influence to others. They see everyone's potential and encourage and inspire those around them. Leading by
example is a trait of a true leader. A group of individuals with poor leadership will quickly degenerate into
conflict, because everyone sees things differently and will naturally lean toward different solutions. One trait
that makes a leader stand out from the crowd is his ability to lead by example. ... Show more content on
Helpwriting.net ...
Being able to lead by example shows that the leader knows what he is up against and proves that he can handle
the task at hand. From the point of view of a person working under the management of another individual it is
important to know that this person is able to lead you and your team by example. This is often a reassuring
thought because one always knows that his leader is always right there for him, and that he will never find
himself alone to handle a mission by himself. This is also important because it gives the people a confidence
that their leader knows what to do in this situation and then they are better able to complete their own jobs,
which is important to the team as a whole. Leadership skills are gained through experience, things such as
public speaking or organizing an event. A follower, as defined by the dictionary, is "One who subscribes to the
teachings or methods of another." Maybe having followers is a sign of good leadership. A leader must have
good communication skills. If that person is not open–minded, unwillingly to accept the ideas of others, and
does not clearly state his ideas, he cannot sufficiently lead others. An effective leader must also have the ability
to make changes. He cannot always stick to the same teachings. As times change,

Stock Market Essay
I have 100 thousand dollars to invest in the stock market that I will disperse among six different companies.
Each of the companies that I have chosen to invest in are different types of companies so that all my money is
not in one type of market. The companies that I chose consist of GW Pharmaceuticals, Callaway, Genesco,
Citigroup inc., McDonalds, and Ball Corporation. Each of these companies are different market types and they
are at different stages of growth. Through purchasing 100 thousand dollar's worth of stock, I intend on these
stocks doubling my money within two years. The trading house that I will use for my investments will be
Charles Schwab. I am using this trading house because the rates are affordable at $4.95 a trade ... Show more
content on Helpwriting.net ...
(GCO). Genesco is a retail and whole seller of footwear and accessories. The reason I see this as a high–risk
investment that is worth it is because the stock recently started rebounding from a long downtrend. The latest
reports have also shown improvements. I will invest another $16,500 into Genesco which will give me 625
shares with no dividend. Another high–risk stock I would get into is GW Pharmaceuticals. This stock appears to
jump up and down a lot which means if I could figure out when it is at its lowest, I could buy a lot of shares and
turn it back around once the stock peaks again. By purchasing this stock, it gives me a stock that is related to
medicine which allows my money not only to be dispersed in different stocks, but different markets. GW
Pharmaceuticals is currently selling at $103.73 so with $16,500 I would buy 160 shares. The last stock that I
would like to invest in is Callaway Golf. By having this stock in my portfolio, it gives me a stock in the sporting
market. I picked this stock because it has been on a steady rise and the golf business is doing better and better. I
have an interest in this company and I own their product so I know I am investing in a good product. The
dividend is very low for Callaway at only .30% which means I will not get a big quarterly check at all but I still
like purchasing this stock. This stock cost $14.52 so with $16,500 I can

Sample Interview Summary Reports
Interview Summary Report
For interview I was fortunate enough to speak with Tonia Dudley who is an Information Security Risk
Reporting and Awareness Analyst at Charles Schwab in Chandler, Arizona. She was very happy to share her
wealth of knowledge with me and I came away with multiple resources for more information and a greater
understanding of the job itself. Not only did I ask questions about her current position, but I also wanted to
know about her prior experience and schooling that qualified her for the job.
While working for Checker Shucks Kragen Auto Parts, Tonia graduated from the University of Phoenix with a
degree in Business administration. She then used her education to move from her accounting assistant position
to a technical position that dealt with the implementation of PeopleSoft Financials and ... Show more content on
Helpwriting.net ...
Some companies prefer a four–year degree from a university with a Computer Information Systems program.
Although, some people, such as Tonia Dudley, study business management or other related areas of business
and are able to succeed in this industry. In some cases employers are even willing to overlook education if a
candidate has sufficient experience and a proven track record. Additionally, individuals must also possess strong
communication and writing skills since much of their work is done in groups or with customers. Once a
company hires a graduate with little experience they will usually undergo additional training whether formal, or
informal. Depending on the company this training may consist of on the job training, entry–level certification
courses, or technical classes, which is usually paid for by the employer. Overall, maintaining a current technical
understanding for the Information Systems is very important, and this is done through continuing education and
certification

Cost Of Capital At Ameritrade
Cost of Capital at Ameritrade
Introduction:
Ameritrade is a pioneer in the deep–discount brokerage firm market that was formed in 1971. In March 1997,
Ameritrade raised $22.5 million in a stock IPO allowing the company to continue its long tradition of adopting
the latest advances in technology, and substantially increasing advertising to build its brand and improve market
share.
Joe Ricketts, Chairman and CEO of Ameritrade Holding Corporation, wanted to improve the company's
competitive position in the deep–discount brokerage market. To do so, he was considering significant
investments in technology and marketing.
Factors to be considered:
The Ameritrade IPO had only been issued in March 1997. Therefore, in order for Ameritrade to analyze its
potential investments, it needed to compare the Betas of other similar companies since calculating a Beta based
on its own stock price was not yet feasible. In order to do such an analysis Ameritrade needed to determine its
type of business. It had two options: a traditional full service broker or a deep discount online brokerage firm.
For the analysis of this report, we determined that Ameritrade was an online brokerage firm. Its competitors in
this sphere were Charles Schwab, E–trade, Quick and Reilly, and Waterhouse Investor Services. Additionally,
we did not use the stock price of E–trade in our analysis, as there were insufficient price data for E–trade to
calculate risk accurately.
Ameritrade needed to calculate the

Morningtar Case Study
As a manager for Mansueto, I would have him consider not to drop stocks and bonds from the business.
Although mutual funds are a great option. Having diversified portfolio would serve every clients needs
financially. Dropping stocks and bond's from Morningstar's financial options would be a grave mistake. This
move will give other big investment firms such as Ameritrade, Charles Schwab, and Merrill Lynch a greater
advantage over Morningstar because of their diversity of investment options. While mutual funds are
professionally managed and has many investors involved, there are still people who don't want a stockbroker or
company to handle their financial decisions. Investing in stock, will give investors financial freedom to invest in
companies that they like or believe in. Because of large numbers of people investing in any one mutual fund, the
funds can afford to invest in hundreds(if not thousands) of securities at any one time, minimizing the risks of
any single security that does not do well. (Ferrell, Hirt, Ferrell, 2009)
Stocks, which allows investors to own a percentage in a company, or in other words own ... Show more content
on Helpwriting.net ...
(Ferrell, Hirt, Ferrell, 2009) This strategy allows investors to minimize their risk of losses because they still
have other investments in the mutual funds. Although this is a great option for investors, this does not give an
investor leverage like stocks, because of the inability to choose CEOs' or make decisions pertaining to any one
particular company. Having mutual funds as an only option, would probably deter investors that want more
options in their investment portfolios. For years, Morningside has prided themselves on giving people options,
at this time my recommendation for the companies future to leave our offering as is, and continue to grant
investors great options and customer

The Individual and the Corporation: Kathy Levinson and...
The Individual and the Corporation: Kathy Levinson and E*Trade
Case Study
Lisa C. Henkel
Professor Diana Budhai
BUS380 Managing Diversity in the Workplace
March 2009 Section 30071196
April 29, 2009
|Table of Content |
Introduction....................................................................................................3
Background....................................................................................................4
Analysis....................................................................................................................6
Conclusion......................................................................................................7
References.....................................................................................................9
Introduction
This case study research paper will examine the case of Kathy Levinson, former ... Show more content on
Helpwriting.net ...
While Kathy had been able to establish herself and move progressively forward there were still those openly
discriminatory toward homosexuals. She was concerned that people would see her personal involvement with
No on Knight as a corporate endorsement. (Badaracco, 2002) An endorsement for or against such a politically
charged issue could cost E*Trade business– and the nation's eye was watching in what direction California
would decide.
Ms. Levinson had the luxury of choice. She had been an activist in the past for both domestic partnership rights
by being instrumental in the establishment or the recognition of domestic partnership and benefits eligibility at
Charles Schwab. She had advanced the cause of women's equality through her example as one of the first
women senior partners. (Badaracco, 2002) She did not have to lead the way on this particular campaign– she
had already earned her spot in "history".
Conclusion
Ultimately, Kathy and Jennifer Levinson decided to make a large financial contribution to the No on Knight
Campaign for $300,000. It was the largest single private contribution received by the campaign and attracted a

good deal of media attention in the California press. That was the extent of her involvement, however, for this
particular endeavor. She was asked several times but declined to speak public about her beliefs on gay marriage
in reference to prop 22. (Lee,

Essay about Cost of Capital at Ameritrade
In mid–1997, Joe Ricketts, Chairman and CEO of Ameritrade Holding Corporation, wanted to improve his
company's competitive position in deep–discount brokerage1 by taking advantage of emerging economies of
scale. The success of the strategy required Ameritrade grow its customer base. The growth would require
substantial investments in technology to improve service and capacity, and in advertising, to increase customer
awareness. The strategy would require large expenditures relative to Ameritrade's existing capital. In order to
evaluate whether the strategy would generate sufficient future cash flows to merit the investment, Ricketts
needed an estimate of the project's risk.
Company Background
Formed in 1971, Ameritrade has been a pioneer ... Show more content on Helpwriting.net ...
Interest revenues were generated by charging customers on debt balances maintained in brokerage accounts and
the investment of customers' cash segregated in compliance with federal regulations in short– term marketable
securities. Interest revenues were offset by interest payments to customers based on credit balances maintained
in brokerage accounts.
Virtually all of Ameritrade's revenues were directly linked to the stock market. Investors generally curtailed
trading activity and their borrowing in response to sustained downward movements in the stock market. For
example, trading activity declined more than 20% in 1988 following the stock market crash of October 19,
1987. A substantial decline in the stock market could therefore lead to a steep decline in Ameritrade's brokerage
commissions and net interest revenues.
Full–service brokers were less sensitive to market movements than deep–discount brokers like Ameritrade.
Full–service brokers received asset management fees, which partially shielded the revenue stream from market
declines. Moreover, most full–service brokerage firms such as Merrill Lynch diversified their revenue stream by
engaging in investment banking activities such as mergers and security underwritings.
Planned Investments and the Cost of Capital
Ricketts planned to grow Ameritrade's revenues by

Case Study: Ameritrade Essay
Executive Summary: In mid–1997 Joe Ricketts the Chairman and CEO of Ameritrade, decided that
Ameritrade's new mission would be to become "the largest brokerage firm worldwide based on the number of
trades." In order to accomplish this mission Ameritrade would need to invest significantly in technology and
advertising. This strategy would require large expenditures relative to Ameritrade's existing capital. In order to
gauge the financial impact of these large expenditures, there needed to be some accounting for the riskiness of
the project. The average return on equity for Ameritrade from 1975 to 1996 was 40% and recent returns were
much higher, with each of the most recent five years having larger returns than the 40% average. ... Show more
Ricketts planned to grow Ameritrade's revenues by targeting self–directed investors, even defining Ameritrade's
mission 'to be the largest brokerage firm worldwide based on the number of trades.' This strategy would require
large expenditures relative to Ameritrade's existing capital. In order to evaluate whether the strategy would
generate
sufficient future cash flows to merit the investment, Ricketts needed an estimate of the project's risk. Ameritrade
has been a pioneer in the deep–discount brokerage sector, since it formed in 1971. Ameritrade not only helped
to create the deep discount market but it also was the first to offer many new services that changed the way
individual managed their portfolio. The average return on equity during 1975 – 1996 was 40% and recent
returns in the last five years were much larger than the 40% average. In March 1997, Ameritrade raised $22.5
million in an initial public offering allowing the company to continue adopting the latest advances in technology
and to increase advertising to build its brand and improve market share. Ameritrade two primary sources of
revenue were from transactions and net interest. Which meant that virtually all of Ameritrade's net revenue were
directly linked to the stock market. Ameritrade therefore was much more sensitive to declines in the stock
market than the full–service brokers. Many of

Charles Schwab
Background
In 1975, Charles Schwab revolutionized the brokerage industry with a different business philosophy – allowing
individual investors to manage their assets and making transactions free from high costs and conflicts of
traditional brokerage firms. Schwab was able to lead the investment wave of 90¡¦s by sticking to the customer
centric principle and by adapting to the new technology faster.
However in the late 90¡¦s and early 2000¡¦s, Charles Schwab¡¦s brand was caught in an increasingly competitive
and commoditized category, stuck between deep discount brokers and full service firms. The competition from
the internet discount brokers like Ameritrade, E*trade etc cut into the market share and transaction fees, the
company¡¦s ... Show more content on Helpwriting.net ...
Analysing Talk to Chuck ads
The first thing to notice about the Talk to Chuck advertisement was the medium ¡V animation. The ads were not
exactly cartoons ¡V they were shot on film and then coloured over using the Rotoscopy technology from MIT
Media Labs veteran Bob Sabiston (the same technology was used in the movie ¡§Waking Life¡¨). The animated
ads succeeded in focusing people¡¦s attention to the conversations. Somehow the removal of the real–world
details present in the live actor¡¦s face and retention of the actual background set, forced consumers move past
what they were seeing and shifted their attention to the dialogue. The characters discussed about commissions,
trades and plans for the future.
The second surprising choice was the new slogan, ¡§Talk to Chuck¡¨ ¡V not Charles, but Chuck. Even though
Mr. Charles Schwab was not present in the ads, the campaign was centred on him. The Schwab campaign
carried the theme ¡§Talk to Chuck¡¨ which appeared as an eye catching graphic device in the form of a dialogue
balloon as would be found in a cartoon strip. Some liked the use of the name ¡§Chuck¡¨; some loved it; some
hated it; but everybody noticed it. Overall it communicated a company that was comfortable to talk to,
approachable and on your level.
From the 4 P¡¦s perspective
Product ¡V For

The Internet Revolution
The Internet Revolution Now, with the click of a button, consumers are buying just about anything imaginable,
and all from the convenience of the internet. People no longer have to leave their homes, work or where ever
there is internet access to make important purchases. Technology has advanced so that companies are
conducting business around the world with out ever meeting. No longer do consumers or businessmen have to
shake to complete a deal or a sale, but merely click down on the mouse and the numbers change. Some internet
companies have never seen their customers and yet some traditional retailers have not yet acknowledged the
internet. However, “convergence is the new religion (“The Real…” ... Show more
They also allow the investor to take all responsibility and buy, sell or trade as much as they want for a minimal
fee. “In the first two months of 1999 alone, the number of trades executed over the internet has
increased by 25% to 425,000 per day (Wilson 36).” Internet trading is growing steadily and the same
can be said for on–line banking. “From 1993 to 1998, the typical U.S. banks assets grew at 8%. Over the
same period, Telebank, the nations largest on–line bank, grew at 53% per year (Wilson 35).” This is a
great sign for the public. With so much competition with online trading and banking, companies are constantly
offering cheaper trading rates and boosting interest rates to gain the attention of potential customers. Banks are
also saving money through the web too with the cost of an in perosn transaction costing $1.07 and an on–line
transaction costing only $.01, as reported in “Can Online Banking Replace Conventional Banks?
(32).” With the holidays soon approaching, companies are rushing to update their internet sites for the
shopping season. Department stores such as J.C. Penny, Nordstrom, Sears and K–Mart are all upgrading for the
rush (“The Real…”53). Tiffany, having sworn never to sell their diamonds and pearls over
something as common as the web, are doing just that

Invetment bearing Securities & their role in Portfolio Essay
INvestment & Portfolio Management
Interest Bearing Securities and Their Role in Portfolio Management
Individual Assignment No.1
Nishith Panthi
1/15/2014
Contents
Executive
Summary...................................................................................................................................................3
Introduction................................................................................................................................................................3
Interest bearing Securities........................................................................................................................................3
Money Market Securities.........................................................................................................................................3
Long Term
Securities.................................................................................................................................................4
Distinguish Between Money Market Securities and Capital Market Securities............................................4–5
Techniques for Valuation of Securities and Other Assets....................................................................................6
Assets Classes and Portfolio ... Show more content on Helpwriting.net ...
Any government or corporation requires capital (funds) to finance its operations and to engage in its own long–
term investments. To do this, a company raises money through the sale of securities – stocks and bonds in the
company's name. These are bought and sold in the capital markets and are known as long term securities.
Cities, states, the federal government, and corporations issue bonds to raise capital for purposes such as building
roads, improving schools, opening new factories, and buying the latest technology. Individual bonds can help
provide stability for investor's portfolio. By diversifying your investments across different asset classes–such as
stocks, bonds, and cash–an investor can balance his risk versus potential return. Investors also use fixed income
for savings and to generate income.
Adding bonds to a stock portfolio can help lower the portfolio's volatility over time because stock and bond
prices historically have not generally moved in the same direction and in the same magnitude at the same time
(Charles SCHWAB, 2013).
Distinguish Between Money Market Securities and Capital Market Securities:
Money market is a component of financial market where short–term borrowing can be issued. This market
includes assets that deal with short–term borrowing, lending, buying and selling. The

lending market and its aftermath reflec Essays
lending market and its aftermath reflects K&A paradigm: format should be to explain the KAM model, then
identify the initial dislocation triggering the bubble,Describe the Aliber–paradigm. Explain utilizing the housing
bubble that has occurred in the past 8 years. Also explain your position on the bubble housing crisis. Describe
the stages of the bubble for the aliber–paradigm. Using the paradigm to explain problems in stock market and
housing bubble burst.
The Leir Center For Financial Bubble Research
Working Paper #1
THE KINDLEBERGER–ALIBER–MINSKY PARADIGM AND THE GLOBAL SUBPRIME MORTGAGE
MELTDOWN
William V. Rapp, The New Jersey Institute of Technology, United States, rappw@adm.njit.edu
ABSTRACT
This paper analyzes the current ... Show more content on Helpwriting.net ...
Further as the KAM paradigm predicts, the subprime mortgage meltdown and its aftermath have brought
numerous civil and criminal actions. For example, mortgage fraud in the US, including Federal and state
prosecution, is growing dramatically. Suspicious activity reports related to mortgage fraud increased over
1000% between 1997 and 2005 and pending FBI mortgage fraud investigations rose from 436 in fiscal 2002 to
1210 in fiscal 2007 (Grant, 2008). The huge increases in the US mortgage market and its increasing complexity
have opened many attractive opportunities for fraudsters across a range of financial activities and institutions.
The most common frauds involve "property flipping" or other schemes to get proceeds from mortgages or
property sales via misleading appraisals or false documentation. The SEC is also looking at insider trading
related to unexpected write–downs by publicly traded companies with assets tied to mortgage–backed
securities. Further plaintiffs' lawyers and their clients have been active in making other claims such as
misrepresentation or failure to disclose materials information, trying to recover some of the billions of dollars in
losses.
However, to grasp the subprime bubble and meltdown in its development, subsequent crash and current
aftershocks, one must first understand the key changes that occurred in the financial markets for

Industry History : A Company
A. Company Summary Suggested length of 4–6 pages B1. Industry History: Describe the history of the industry
in which the company will operate. At the very hour, when early people learned to exchange commodities, the
concept of finance was born. Once the concept of money came in existence, the gradual developments started
and the first banks were established in Europe in the fourteenth century. This was made possible by the
developments of the legal and accounting systems which enabled money–tracking. The 17th century marked
another change when the first stock markets started rolling. It also provided the business sector and the
governments an opportunity to collect funds by selling equity and the money–borrowing concept was altered
("History of Banking and Finance," n.d.). Financial planning services by the md–20th century primarily meant
one thing: sales. Apart from a few dozen investment "counselors" whose activities were regulated by the
Investment Advisor Act of 1940, those who offered advice were indistinguishable from those who peddled their
employer's products. A financial planner then was "an insurance man...who estimated estate tax payments for
wealthy customers and sold insurance to fund those payments". Thirteen men who gathered in Chicago in 1969
were determined to create a new profession; one that could stand on equal footing with the accounting and legal
professions and help ordinary Americas manage their financial lives. From the two–day meeting would emerge
a

Ameritrade Company Case
Finance Seminar 12.12.2011 Case Study #2 Ameritrade Company Cost of Capital Evaluation Executive
Summary The Ameritrade case study analysis brought in this paper comes to estimate the final cost of capital
that should be applied to Ameritrade's technology and marketing investment project. Allegedly, the final
purpose of every WACC calculation is in helping to estimate the NPV of a project in order to make a "gono go"
decision, whether it is done by an investor or a creditor. However such a decision requires also the computation
of future cash flows. Since we are missing the information regarding Ameritrade's future cash flows, this paper
has one and only goal – to evaluate and discuss the main possible alternatives for ... Show more content on
Helpwriting.net ...
However, we have to consider Ameritrade's upcoming investment of 255,000,000$ in technology and
advertising and the ways Ameritrade is going to finance this investment. The best scenario is finding the optimal
capital structure by using interest coverage ratio table but, unfortunately, we do not have enough sufficient data.
Ameritrade plans to make an investment which is 13 of its total value. By any standards, this is a very
significant amount For Ameritrade. Ameritrade's balance sheet for 1997 shows that the firm has ~ 53.5$m in
cash reserves, which might be considered as possible financing source. The firm's net income for that same year
is much lower and equals to ~13.8$m. The implications are that minor fluctuations in Ameritrade's cash flow
might result in negative net income next year and therefore we conclude that Ameritrade should not use its cash
reserves for its planned investments in order to prevent cash flow crunch scenarios. Another option is to finance
the project by issuing equity, however at that stage we can't examine this option based on the available data.
That been said and without the ability to find the optimal capital structure, we believe that the whole amount of
the planned investment should be financed by bonds issuance. Thus, the interest–bearing debt for our
calculations will be 255,000,000$. Beta of debt Since Ameritrade has no current traded debt, it

U.s. Trust, Bank Of America
The History
U.S. Trust, Bank of America Private Wealth Management (formerly known as U.S. Trust Corporation) was
founded in 1853 and is currently one of the nation's oldest and largest investment and wealth management
firms. Prior to becoming a subsidiary of Bank of America, N.A., U.S. Trust was acquired by Charles Schwab,
and Co. Before and after the acquisition by Charles Schwab, and Co, U.S. Trust expanded its operations into
many new local markets making it one of the largest fiduciary standard investment management firms to have
offices in a significant number of local markets. The expansion into these markets was precipitated by the
realization that many markets with substantial wealth were being underserved. From Wichita, Kansas, where
clients had generational farms and oil and gas wealth, to Phoenix, Arizona, where clients were moving for
retirement, U.S. Trust had dedicated offices in many regions in order to have a presence in underserved markets
in the wealth management industry.
Following the sale of U.S. Trust to Bank of America in November of 2006, for $3.3 billion in cash, the new
management team at U.S. Trust began to reevaluate its' presence in so many local markets. Over the course of
six to seven years, U.S. Trust closed or significantly reduced many of its local offices sending those accounts
that had been serviced locally to new "Regional" service centers located in Dallas, Texas, Providence, Rhode
Island, and Atlanta, Georgia.
This decision to

Ameritrade Harvard Case Study
Ameritrade – case study Executive Summary Ameritrade provides online brokerage services and operates an
Internet–based financial management services business. 90% of the company's revenues are from the provision
of discount brokerage services. The company's objective is to improve its competitive position in deep–discount
brokerage. In order to achieve this objective, the company must grow its customer base, requiring an investment
of $100 million to upgrade its technological capabilities as well as an increase of $155 million for its
advertisement budget. In order to evaluate the company's cost of capital, we used the Cost Asset Pricing Model.
Since the company went public recently, it would not be an accurate assessment of the risk of ... Show more
Estimating the Cost of Capital In order to calculate the cost of capital of Ameritrade we will use the Capital
Asset Pricing Model. This model helps estimate the required rate of return of a certain investment for the given
risk. In the case of Ameritrade, we can use this method by finding the most accurate risk free rate, market risk
premium and asset beta. We can then find the return on assets by using the following formula: Ra= Rf+ βa
(Rm–Rf) To find the asset Beta (βa), we need to find the weighted average β of equity and the weighted average
β of debt. We consider the β of debt to be 0, as debt has no relationship with market risk and it is evident from
the balance sheet that Ameritrade had no interest bearing debt in 1997[1]. βa=D/(D+E)* βD+E/(D+E)βE
βa=D/(D+E) *0+E/(D+E)βE So βa=E/(D+E)βE Estimating the Risk–free rate The historic average returns from
1950 to 1996 and from 1929 to 1996 are given In Exhibit 3. We chose the latter time period as we considered it
would give us a more reliable estimate of the risk–free rate by discounting both the Second World War and the
Great Depression. It is necessary to evaluate the expected length of the project and utilize a risk free rate
applicable for the same time period. Ameritrade is investing $100 million dollars in technology, which is
considered a long–term investment, in order to become the largest brokerage firm. We consider their

Japan Net Bank Case Analysis
HKU178
op y
01/24/02
Japan Net Bank: Japan 's First Internet–only Bank
Yoshiyuki Miyai had a vision. He wanted to establish a completely new standard of banking in Japan – that of
Internet–only banking. As president of Japan Net Bank (JNB), the first
Japanese online bank with no physical branches, Miyai emphasised that customer satisfaction should be the
focus of JNB 's business – his customers should enjoy convenient access to accounts, competitive rates,
customisation and secure transmission of information over the
Web. To bring out the best services, he saw to it that JNB was run with low operation costs, a flat management
structure, flexible computer systems and a small workforce – all drastically
different ... Show more content on Helpwriting.net ...
The bank provided commercial and investment banking services, including credit and equity derivatives, loan
trading and financial advisory services. As of 1 April, 2001, it had 27 million accounts, 578 domestic branches
and approximately 7,600 Automatic Teller Machines (ATMs) in Japan.
tC
Fujitsu Limited (www.fujitsu.com, 10% stake)
No
Computers and information technology accounted for more than two–thirds of sales of Fujitsu
Limited. The company was one of Japan 's top two PC makers and a leading maker of servers, software, storage
devices and peripherals such as printers and scanners. Its information technology services included systems
installation and management. The company also made communications systems, consumer electronics,
semiconductors and electronic components.
Fujitsu reported consolidated revenues of ¥5.48 trillion for the fiscal year ended 31 March,
2001. It consisted of 517 consolidated subsidiaries with operations in more than 100 countries. Its subsidiary,
Nifty Corp., was an Internet Service Provider that offered a comprehensive Internet service called @nifty.
@nifty 's sites and services included ecommerce portals, forums, auction sites, member homepages and Internet
access. As of
January 2001, @nifty had 4.4 million subscribers.
Nippon Life Insurance Co. (Nissay, www.nissay.co.jp, 10% stake)
The world 's third–largest insurance

A History of the City of Buffalo
Many things from the past have brought about the way we live today. The history of a big city has a tremendous
affect of making our town a better place to live. Architecture that was once full of life is currently standing but
abandoned downtown, in the city of Buffalo. These architectural pieces are what make Buffalo so special and
outstanding. It's not always about the new technological advances and new buildings that are being built, but the
ones with the older memories that should be appreciated and looked at as a reminder of how Buffalo came to be.
The older buildings still make up a great part in this large city, whether abandoned or not, they should still be
admired as a piece of art in our history. The city of Buffalo was established because of a man by the name of
Joseph Ellicott, who created the map of Buffalo in 1804. He had a plan for a perfect city, and his map still
resembles the city today (Priebe). To have Buffalo look like a map from over 200 years ago, is remarkable.
Many of these old businesses and buildings closed down over the years, only to build new ones. These
businesses once held many jobs for people, some that can't be replaced. Even though many businesses shut
down, some still exist today and carry on its history. Because of the businesses and its proximity to the Great
Lakes and Canada, Buffalo remains one of the greatest cities. The village of Buffalo was planned by Joseph
Ellicott in 1804. Ellicott had a map plan of what he wanted Buffalo to

Principles of Banking
Principles Of Banking & Finance Chapter 2 : Financial Systems Economic function: Channeling funds
from units who have saved surplus funds to units who have a shortage of funds. Lenders–Savers : Units who
have saved can lend funds. Borrower–Spenders : Units with a shortage of funds must borrow funds to finance
their spending. Channelling of funds are important because, – Lender–savers have excess of available funds but
do not frequently have profitable investment opportunities, while borrower–spenders have investment
opportunities but lack of funds. – Borrower–spenders may want to invest in excess of their current income or to
adjust the composition of their wealth. Direct Finance : Borrower–Spenders ... Show more content on
Helpwriting.net ...
Mid 1980s – Texas real estate and land prices crash, determined the default of many borrowers with mortgage
loans issued by S&Ls, thus many S&Ls failed at end of 1980s. 1989 – New legislation, FIRREA is
adopted. (Financial Institutions Reform, Recovery & Enforcement Act) 3. Credit Unions – Non–profit
institutions mutually organised and owned by depositors. – Satisfy the depository and lending needs of their
members belonging to a particular group. – Deposits used to provide loans to other members and earnings from
these loans are used to pay higher rates to member depositor. – Most numerous among depositary institutions
(8535 in 2006 according to Credit Union National Association) Contractual Savings Institutions – Acquire funds
at periodic intervals on a contractual basis. – Liquidity of assets is less important as they can predict with
reasonable accuracy the future payments due to their customers. – Invest their funds in long–term securities.
(Corporate Bonds, Stocks and Mortgages) 1. Insurance Companies – Protect individuals and firms (aka. policy
holders) from adverse events. – Receive premiums from policy holders and

Condoleezza Rice Essay
Condoleezza Rice
Not many people can add the position of National Security Advisor to their list of achievements, especially if
those people are women. Condoleezza Rice, however, can place the accomplishment right up there with being a
previous member of President Bush's foreign–policy team, and tenured professor and provost in the political
science department of the prestigious Stanford University.
Rice is well known for her knowledge on Russian history and current events. After growing up in Birmingham,
Alabama during a time of racial segregation, Rice soon went on to graduate from the University of Denver at
the age of 19 (she skipped two grades), where she became an expert in the issues of the Soviet ... Show more
As a 45–year–old African American woman, Condaleezza Rice definitely has some opposition to face. Still,
Rice has proven herself to be anything but a pushover. President Bush says "Dr. Rice is not only a brilliant
person; she is an experienced person. She is a good manager. I trust her judgment. America will find that she is
a wise person, and I'm honored [she joined] the administration".
Rice also shows strong opinions concerning what it means to be American, and how America fits within the
realm of the rest of the world. "Power matters. But there can be no absence of moral content in American
foreign policy, and furthermore, the American people wouldn't accept such an absence. Europeans giggle at this
and say we're naive and so on, but we're not Europeans, we're Americans –– and we have different principles".
Rice considers herself completely Republican in all issues. With regards to foreign policy, she sees herself as
conservative. On other issues, however, she views herself as libertarian and moderate. Still, "Ms. Rice is
considered less isolationist than some leading Republicans... She has said she will work to promote Mr. Bush's
vision of combining 'humility with strength' around the world".
So just what does the most politically powerful black woman in politics do? BBC News.com describes her as
having the responsibility "for providing policy advice

Building Ans Sustaining Trust Case Study
Building and Sustaining Trust Case Study Building and Sustaining Trust Case Study Human Resources and
Communication in Project 330 Building and Sustaining Trust Case Study Abstract A project manager's role in
building or sustaining trust both within the team as well as between themselves is to establish a strong
relationship with his/her team members from the beginning of building that team. Trust will play an important
role in any team member's process because without trust between the project manager and their team you will
not have the cohesion, dedication, commitment or loyalty from any team member. This is why a manager's role
is so important in the beginning of putting their team together. When trust is integrated into ... Show more
President and CEO of the Charles Schwab Corporation states that when you have your team established then
you have to foster trust among the team members so that you can collaboratively move the organization
forward. He says it's crucial to have confidence in each other and promote openness, transparency and
vulnerability (Role player, 2009). According to my text book "Making the Team: A Guide for Managers", it
explains that in order to trust another person you must have respect for another person because without both you
have nothing. A few examples of knowing that you have respect for your fellow team mates are when you speak
of your team in a very positive tone, when you feel as though decisions will not be made without the
consideration of all members, when you know that you feel comfortable in team presentations and when you
know that every suggestion and idea that is being made by each member is important and will add that special
detailed touch to any team project. According to Cronin and Weingart, teams high in both trust and respect
should be desirable as team members begin with the belief that their fellow team mates have something
valuable to

Securities Regualtions Study Guide
XVI. Securities Regulation – 1933 Act A security is a contract, transaction or scheme whereby a person invests
his money in a common enterprise and is led to expect profits solely from the efforts of a promoter or a third
party (Howey test) Provide investors with information for securities offered for sale and to prohibit fraud in the
sale of securities. The 1933 Act governs the public distribution of securities. It prohibits the offer or sale of
securities to the public unless the offering is properly registered. A. Persons covered are underwriters, dealers
and issuers. 1. Underwriter purchases securities from an issuer with the intent to distribute to ... Show more
Accredited investors include: Up to 5 million. Advertising is not permitted. No unaccredited investors are
allowed to purchase. * corporations, partnerships, or other organizations: * financial institutions; * with more
than $5,000,000 of assets: * corporations and partnerships, not formed expressly for this investment; * non–
profit organizations; * any entity owned entirely by accredited investors; * individuals or married couples *
corporate or partnership insiders; * with assets worth more than $1,000,000; * or individuals who earned at least
$200,000, or $300,000 for a married couple, in the last 2 years, and expect to make at least the same amount in
the current year. b. Rule 504 A non–reporting company can raise up to $1,000,000 from any number of
individuals, accredited or not, without a SEC registration. General offering and solicitations are permitted under
Rule 504 as long as they are restricted to accredited investors. Shares are not restricted. 1) Offering cannot
exceed $1 million in a 12 month period. 2) Unlimited number of investors or unlimited type

Evaluation : Training Evaluation Opportunity Background
Section II – Training Evaluation Opportunity Background The main purpose of this investigation is to
determine the best evaluation strategies that are available that align with the objectives of Charles Schwab
which includes growth in the industry through building trust by putting clients at the heart of the experience and
creating products, services, and platforms that not only meet the client's financial goals, but help shape the
industry (Charles Schwab, n.d.). To determine the best evaluation strategies Charles Schwab could use, an
investigation of current strategies is discussed along with current performance statistics. In addition to the
current state of the industry and Charles Schwab, an analysis of external best practices of ... Show more content
Market Share: refers to the increase in new clients with larger assets under management while maintaining
current clientele which includes increasing return on investment and profitability (Innis & la Londe, 1994).
Objectives: refers to the goals wanting to be achieved through the use of a training program which could include
improving the customer service performed by employees who exhibit all the activities required of their position
(Buys, & Louw, 2012). Performance Measurement: The measurement of performance is defined as the
measurement of internal and external customer satisfaction, efficiency of operations, quality of service,
continuous improvement efforts, public and social responsibilities, and financial performance (Curtright, Stolp–
Smith, & Edell, 2000). Retirement Recordkeeper: A recordkeper is responsible for maintaining and tracking all
participant data and assists the regional plan coordinator by designing enrollment forms and participant
statements along with updates; reconciling information with the depository or custodian or transfer agent;
allocating contributions and earnings; and providing allocation schedules (Subramanian, 1996). Behavior: refers
to the transfer of what is learned into change of behavior as a result of the training

This Game Was Surely Created To Be An Educational Process
This game was surely created to be an educational process for students, and other people who want to learn
about the stock market and how it works. It helps people come to the realization that the stocks they invest in
need to be trending upward for them to make a profit as investors. Although you can never be 100% safe
because stocks fluctuate ever so often; you can make smart and logical investments that give you the best
chance to succeed in the stock market, and hopefully make a good profit from the stocks you purchased. This
can be done by researching stocks and not only checking what they're currently at, but also what they have done
in a 52 week time period so you can attempt to find something to invest in that is consistently ... Show more
But for others, they have invested large sums of money and lost it all. An example of growth investing would be
for an investor to invest in some sort of new technology. There is a certain method that growth investors use,
there are five different methods that value investors should spend time on. But even though these methods are
pretty much set in stone like a mathematical equation, the investor must also compensate for the company 's
current situation. This meaning that they cannot just follow this exact process and expect the outcome to be
perfect, the investor will have to make some adjustments. The first method is Five–Year Earnings Figures, this
method states that before all else, the investor should figure out if the company they're investing in has been
growing in the past, or is based on annual revenue. The second method is Strong Projected Earnings Growth,
this method states that a company you're investing in should have a 10– 12% minimum projected five year
growth rate , and if you can find anything higher than 10–12% like 15%, that is more ideal. Next there is Costs
and Revenue Control, in short this is finding out how management is maintaining margins and controlling costs
and revenues by comparing the company 's current profit margins to its past margins and its competition 's profit
margins. Next is ROE(return of investment), this states that using your assets efficiently

U. S. Steel
When founded in 1901, United States Steel Corporation was the largest business enterprise ever launched, with
an authorized capitalization of $1.4 billion. Throughout the years, U. S. Steel responded to changing economic
conditions and new market opportunities through diversification and periodic restructuring. Today, over a
century after its founding, U. S. Steel remains the largest integrated steel producer headquartered in the United
States. U. S. Steel had its origins in the dealings of some of America 's most legendary businessmen, including
Andrew Carnegie, J.P. Morgan, and Charles Schwab. However, its principal architect was Elbert H. Gary, who
also became U. S. Steel 's first chairman. At the turn of the century, a group headed by Gary and Morgan bought
Carnegie 's steel company and combined it with their holdings in the Federal Steel Company. These two
companies became the nucleus of U. S. Steel, which also included American Steel & Wire Co., National Tube
Company, American Tin Plate Co., American Steel Hoop Co., and American Sheet Steel Co. In its first full year
of operation, U. S. Steel made 67 percent of all the steel produced in the United States. Today, U. S. Steel
remains proud of its past, but is focused on its future. As a leader in the increasingly competitive global steel
industry, United States Steel Corporation is dedicated to delivering high–quality products to our customers and
building value for all of our stakeholders (US Steel 2015).
The U. S.

The Impact of Information Technology Infrastructure...
The Impact of Information Technology Infrastructure Flexibility on
Strategic Alignment and Applications Implementation
Sock H. Chung
Department of Computer Information Systems
College of Business
Eastern Michigan University
Ypsilanti, MI 48197 sock.chung@banyan.emich.edu R. Kelly Rainer, Jr. **
Department of Management
College of Business
Auburn University
Auburn, Alabama 36849
(334) 844–6527 rainer@business.auburn.edu Bruce R. Lewis
Calloway School of Business
Wake Forest University
Winston–Salem, NC 27109
(336) 758–7195 lewisb@wfu.edu ** Corresponding Author: Kelly Rainer
The Impact of Information Technology Infrastructure Flexibility on
Strategic Alignment and Applications Implementation
Abstract ... Show more content on Helpwriting.net ...
II. THEORETICAL FRAMEWORK
We develop our theoretical framework by first reviewing definitions of IT infrastructure and its components. We
then define the concept of IT infrastructure flexibility and its relationship to strategic IT–business alignment and
to applications implementation in the organization.
Information Technology Infrastructure
The topic of IT infrastructure has been a key issue for both researchers and practicing managers for some time
[see e.g., Brancheau, Janz, & Wetherbe, 1996]. The organization's IT infrastructure basically integrates
technology components to support business needs but the IT infrastructure concept is more complicated. The
definition of IT infrastructure encompasses a variety of components. Based on previous studies, Duncan [1995]
stated that IT infrastructure includes a group of shared, tangible IT resources that provide a foundation to enable
present and future business applications [Broadbent & Weill, 1997; Davenport & Linder, 1994; Earl, 1989;
Keen, 1991; McKay & Brockway, 1989; Niederman, Brancheau, & Wetherbe, 1991; Weill, 1993]. These
resources include: (1) computer hardware and software (e.g., operating systems); (2) network and
telecommunications technologies; (3) key data; (4) core data–processing applications; (5) shared IT services.
Duncan [1995] also stated that IT infrastructure includes the alignment of IT plans to business objectives, the IT

Aligning IT with Business Strategy Essay
Is it smart for companies to invest heavily in information technology (IT)? Numerous studies indicate that
excessive IT spending will usually reduce company profits and slow productivity. According to an article in the
MIT Sloan Management Review, "Avoiding the Alignment Trap in Information Technology," IT can become a
huge bottleneck to growth in companies if they focus on the wrong remedies for their IT problems (Shpilberg,
Berez, Puryear, & Shah, 2007). The article first focuses on Charles Schwab and its IT struggles during the early
2000's. Then, it presents a study on 504 companies, and IT's effect on their revenue growth. Lastly, it covers the
steps to ensure success in IT's effectiveness. Charles Schwab is a Fortune 500 Company ... Show more content
In addition, aligning each department to a different system or standard doesn't work because a company needs
all departments functioning at the same pace and every department must rely on each other. The largest group
(about 75% of surveyed companies) spent the average amount on IT, but growth was slightly below average
(Shpilberg et al., 2007). Companies in the "The Maintenance Zone" have IT systems that are less aligned to
business objectives and are, as a result, less effective as a whole. The authors state that the group treats IT more
like plumbing, "bumping along" until something bad happens. However, since the group's deviation of IT
spending and revenue growth from the average is minimal, the article doesn't put much focus on the "The
Maintenance Zone." The next group, experiencing "Well–Oiled IT," were more focused on execution and
effectiveness at getting IT projects up and running (on a budget). They spent 15% below average on IT, yet
revenue growth was 11% above average (Shpilberg et al., 2007). Although the group's revenue growth was
above average, the companies just didn't spend enough on IT to maximize their potential. More specifically,
they didn't spend enough to align the effective IT systems to their business objectives. The final group of
companies, in the "IT–Enabled Growth" zone, experienced the upside of keeping IT highly aligned

The Relationship Between Entrepreneurship, Innovation and...
Discuss the relationship between entrepreneurship, innovation and economic development. What role do
creativity and problem solving play in this relationship? Refer to both theory and examples from the business
world to support your discussion.
Date of submission: 26 November 2010
Name: Chen Wanxin
School: the University of Nottingham, Ningbo, China
Module convenor's name: Maris Farquharson
Module title: Entrepreneurship and Business
Module code: P11440 (2010)
Length: 1885 words
Entrepreneurship, which was a notion put forward approximately three centuries ago and soon becomes a
contentious topic, contributes positively to economic development mainly through innovation. Whilst creativity
and problem solving are required at all points ... Show more content on Helpwriting.net ...
From the writer's point of view, the former two theories are relatively intellectually imperfect due to their limit
of time horizon, while Schumpeter's theory is far more sophisticated as well as complete, in spite of its
restriction to some extent.
The term innovation is much more frequently used in people's daily life. Despite that, it is necessary here to
clarify what innovation exactly is in the economic context. Lumsdine and Binks (2007) regarded innovation as
'a valuable skill in demand by employers who recognize the ability to innovate as a key for remaining
competitive in the global marketplace'. While innovation was conceptualized as the key to economic
development in any enterprises or even countries, by Hisrich, Peters and Shepherd (2010). They also
categorized innovation into three types shown as follows:
Moreover, Johnson (2007) pointed out that innovation could be both introduction of a novel production method
or product as well as the development of a new geographical market for an existing product. While Bessant and
Tidd (2007: 29) summarized innovation as: 'the process of translating ideas into useful–and used–new products,
processes and services'. Their idea

Leading by Leveraging Culture
02–088 Leading by Leveraging Culture Jennifer A. Chatman1 Sandra E. Cha 1 The first author wrote this
chapter while a Marvin Bower Fellow at the Harvard Business School, and is grateful for their support.
Copyright © 2002 by Jennifer A. Chatman and Sandra E. Cha Working papers are in draft form. This working
paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission
of the copyright holder. Copies of working papers are available from the author. Leading by Leveraging
Culture Jennifer A. Chatman1 Haas School of Business University of California Berkeley, CA 94720–1900
chatman@haas.berkeley.edu And Sandra E. Cha Harvard Business School Soldiers Field, Sherman Hall 102
Harvard ... Show more content on Helpwriting.net ...
And yet, Southwest has been the only U.S. airline to be profitable for 28 consecutive years (Laing, 2001). One
key to Southwest's success is its remarkably short turnaround time, 15 minutes versus competitors' average of
35 minutes (O'Reilly & Pfeffer, 1995). Planes don't sit long at the jet way. Instead, employees across functional
lines band together to get the planes out quickly, despite being 89% unionized. This results in an average plane
utilization of around 12 hours at Southwest versus the industry average of closer to 9 hours. Southwest's success
hinges not on how brilliant, unique, or opaque their strategy is, but on the alignment between their culture and
strategy, and how clearly employees understand, and intensely they feel, about the culture. Strong cultures
enhance organizational performance in two ways. First, they improve performance by energizing employees –
appealing to their higher ideals and values, and rallying them around a set of meaningful, unified goals. Such
ideals excite employee commitment and effort because they are inherently engaging (Walton, 1980), and fill
voids in identity and meaning that some believe; characterize contemporary Western society (Baumeister,
1998). Second, strong cultures boost performance by shaping and coordinating employees' behavior. Stated
values and norms focus employees' attention on organizational priorities that then guide their behavior and

E-Trade Financial Corporation Case Study
RIGA TECHNICAL UNIVERSITY STRATEGIC MANAGEMENT COURSE E–TRADE FINANCIAL
CORPARATION CASE STUDY by Asli Seven Nazir Emre Adir Shamla Tsargand Lecturer: Andrejs
Chirjevskis Autumn 2011 Question 1.Revise E–Trade Vision and Mission Statement.Develop a SWOT
anaylses. When we have a look at E–Trade's vision statement, we see that they emphasize on self–directed
investors and the world market. For the company being reachable from even sitting at home is important. They
say "It's about bringing it home."Accessebility in anywhere in the world is the main point about the avaliabilty.
But there are some missing points in the vision statement. From our point of view the vision statement could be
revised as below: "To empower self–directed ... Show more content on Helpwriting.net ...
Under the moderate scenario, we predict that performance will remain same, however, under the optimistic
scenario, we predict a performance increase. Under the pessimistic scenario, conditions are expected to shift to
Power of Entry and Exit, while the industrial structure stays the same. Under these conditions, a more
competitive environment will emerge, which may lead to further declines in the company's over all
performance. The declines might be attributed to economic environmental factors, threat of terrorism and high
oil prices which drive the market industry. 1) Recommendations for Moderate and Optimistic Scenarios. E–
Trade business strategy has been soundly running as achieving significant improvement in ROE over the three
time periods. Under the optimistic scenario, we observe the possibility of having benefits the demanding
environment conditions; especially, more people will be getting into trading securities as the Internet has opened
up the field of investment. Therefore, E–Trade should be upgraded the technology infrastructure as the demand
grows. Even though this investment creates a temporary excess capacity, marginal costs will fall when Internet
based approach achieves enough economic scale because the cost of adding another customer account or
offering a new product in an online would be very low. In addition, as more consumers visit the site and buy its
products, E–Trade should offer better deal to its

Mission Of The Company 4
A. Executive Summary 4 A1. Company Identification 4 A2. Mission of the Company 4 A3. Business Goals 4
A4. Keys to Success 4 B. Company Summary 5 B1. Industry History 5 B2. Legal Form of Ownership 5 B3.
Location and Facilities 5 B4. Management Structure 5 B5. Products and Services 5 C. Market Analysis 6 C1.
Target Market 6 C2. Industry Analysis 6 C3. SWOT Analysis 7 D. Market Strategy 8 D1. 4Ps 8 D2. Price List 8
D3. Promotional Strategy 8 D4. Sales Forecast 8 E. Implementation Strategy 9 E1. Overall Strategy 9 E2.
Monitoring Plan 9 F. Financial Statements and Projections 10 F1. Forecasted Profit and Loss Statement 10 F2.
Forecasted Balance Sheet 10 G. Financial Report 11 G1. Financial Projections 11 G2. Financial Position 11 G3.
Estimated Capital/Investment Needs 11 A. Company Summary Suggested length of 4–6 pages B1. Industry
History: Describe the history of the industry in which the company will operate. At the very hour, when early
people learned to exchange commodities, the concept of finance was born. Once the concept of money came in
existence, the gradual developments started and the first banks were established in Europe in the fourteenth
century. This was made possible by the developments of the legal and accounting systems which enabled
money–tracking. The 17th century marked another change when the first stock markets started rolling. It also
provided the business sector and the governments an opportunity to collect funds by selling equity and the

Jp Morgan Legacy
J.P. Morgan once said, "Go as far as you can see; when you get there, you'll be able to see farther." This quote
means reach what you have been looking for and once you get that thing keep going. J.P. Morgan was a
successful businessman and banker. Morgan was born April 17,1837 and died in 1893. The famous billionaire
John Pierpont Morgan became the richest man in the 1800's, leading to the growth of many steel companies. J.P.
Morgan's hard work and dedication as a young boy led to his legacy. "Entering his father's [Investment] House
in London in 1856, he was sent to New York the following year to work in that of Duncan, Sherman &
Company, American representatives of George Peabody & Company" (Dictionary of American Biography).
Since Morgan moved to New York this tells us his dad trusted him to help with the business without trying to
stop him. After that, he went to work right away on Wall Street (Baughman). This shows Morgan was always
ahead of the game and never stopped trying. He wasn't the person to wait a year then start he was always one
step. Morgan's early life was a big part of his success people would never known about him if it wasn't for his
career. ... Show more content on Helpwriting.net ...
"Charles M. Schwab was elected president, and Judge Elbert H. Gary was chosen as the chairman of the
executive committee" (Baughman). Morgan is a generous guy he chose these two men to be the president and
chairman he could of chose someone he really trusted be he chose Schwab and Gary. After some very good
business decisions, he launched upon a course that led to his organization becoming the largest corporation in
the world (Dictionary of American Biography). Sence Morgan started working early in his lifetime he was able
to learn the ropes and was more trained. Morgan was one of the richest men if it wasn't for the impact he left we
would've never remembered his

The Internet’s Impact on Stock Trading Essay
"The Internet's Impact on Stock Trading"
Before the internet, stock trading was done exclusively through brokers. Now that computers and technology
have apparent strongholds in the realm of stock trading, more people have access to the market. This essay
shares some experiences that online stock trading services and day traders have had due to the radical
movement of online trading. The essay commences with a fictional anecdote that describes one man's
unfortunate experience through online trading. It then moves to some non–fictional examples. One company
was forced to leave the prospect of trading behind and had to close its services. Another has found refuge in
expanding its holdings by moving its primary focus away from ... Show more content on Helpwriting.net ...
But soon, many investors would realize that this wasn't the case.
Jon was one of these would–be investors. He found internet stock trading as a way to break into the stock
trading game but the game was not kind to him or his finances. In 1998, he created an account with an online
stockbroker, which made trading easier. There was no consultation with a professional broker and stocks could
be bought and sold at the click of a button. In addition, the stock market's boom was kind to investors. Stocks in
technology seemed to be always on the rise. Jon invested. He took three thousand dollars and invested under the
impression that his money would double or perhaps triple. A mere two years later, these internet and
technological companies experienced a realization.
They were vulnerable to an economic decline. In March and April of 2000, the technology boom was no more.
In fact, it imploded: it collapsed in upon itself. Investors are still trying to quantify the damages and costs. Jon's
small portfolio was at the mercy of the technology implosion. He too became a loser in the investing game. His
family savings was not doubled as he hoped, but rather, worth only a couple hundred dollars. Now, he is not
sure where to turn: "I thought I had made the right decision. I saw an opportunity to help my family and our
financial status and jumped on it. I never saw the true risk involved. Technology was hot. Who could

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