This document analyzes the finance, marketing, and operations of ING Direct, an online banking service. It discusses ING Direct's financial performance from 2006-2008, including decreasing profits. The marketing strategy of focusing on savings is examined. Operations are analyzed using a service-profit chain model. Recommendations include improving the current ratio and capitalizing on ING Direct's reputation during the economic downturn.
13. The current ratio compares the liquid assets with the current liabilities and is a measure of short-term solvency. The higher the ratio, the more liquid the business is considered to be (Brockington,1993). Appendix 4 shows the assets and liabilities of ING Direct. From that the current ratio can be calculated as follows:
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15. As credit crunch prevails in the current economy, ING need to capitalise on its ‘simple’, ‘safe’ and ‘savings’ bank image. The financial, marketing and operational aspects of ING Direct was analysed in the report and few recommendations are suggested. As all these aspects are strongly inter-related, a change in strategy of any of these aspects will reflect on other. In ING Direct, marketing and finance acts as supportive functions to operations management. In order to maintain its image in the current business scenario, ING Direct need to be extremely careful in its future plans. The level of success achieved by ING Direct holds some important lessons and offers, some much-needed inspiration to a business world; that could use a little of both right now.
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