Verified Document

Capital One Financial Assessment External Research Paper

Corporate and Business Strategy

Capital One's business strategy is highly aggressive, as is evidenced by their innovative move (for a company with their focus) into the banking industry, and their take-over of several regional banks. Capital One also actively recruits new strategists to work directly at the corporate level, and maintains an internal strategy of frequent strategic change and innovative practices. This leads to an incredibly adaptive business strategy; Capital One has remained poised to exploit new opportunities in the changing banking market.

At the corporate level, Capital One has a healthy mixture of steadfast leadership (the CEO has remained unchanged since the company's formation in 1988) and innovation through new partnerships and new personnel. Like their business strategy, aggressiveness and adaptability have been key components of Capital One's corporate strategy. By incorporating new ideas and personnel into the corporate levels of the enterprise while remaining consistent in its leadership and focus, Capital One has remained viable and highly competitive throughout the many changes in environment the company has weathered.

Acquisition Strategy

Capital One's most recent acquisition, Chevy Chase Bank, only seems out of pace given the company's general public profile. The company has previously acquired two other regional banks, and is possibly poised to enter banking on a national level. Though there was a definite strategy shift when the company decided to enter banking, this acquisition...

Continued growth is necessary for increased profitability and market share, but determining the correct acquisitions is difficult in the current climate. Balancing growth and risk management are key strategic concerns in the immediate future.
International Position

Though Capital One has not begun extensive international operations, the company has already begun to earn a reputation as one of the best credit card companies to use internationally and when traveling. This growing reputation could help to position the company for a large entrance into international markets; as its products and services are already receiving positive attention in foreign markets, Capital One has some unique advantages over other firms that remain operational entirely and solely in the United States.

Capital One is also far behind other companies that have been long established in international markets, however, meaning that this entrance would introduce them to much fiercer competition than what they are currently experiencing in the domestic market. Again, a delicate balance between managing risk and taking advantage of unique and time-dependent growth opportunities must be central to Capital One's continued strategy and growth.

Cite this Document:
Copy Bibliography Citation

Related Documents

Capital One's External Environment and
Words: 1825 Length: 6 Document Type: Essay

International Position Capital One has a good position in the Canadian and British markets. The international credit card business accounts for 11.3% of total revenue in the credit card operating segment (2009 Capital One Annual Report). Capital One does not have retail banking in Canada but does have it in the UK, although that part of the business is relatively minor. In credit cards, the UK business declined 14.6% in 2009

Financial Health Hyundai Company Analysis Finance Is
Words: 1699 Length: 5 Document Type: Essay

Financial Health Hyundai company analysis Finance is a critical function in any business. It acts as an indicator for the health of a company, as well as determining its growth. When a company realizes new investment opportunities and other future aspirations, finance enables such ventures. Thus, finance reflects the performance of an organization (Gruen & Howarth, 2005). Measurement of performance takes place over a period of time. Organizations practically present their financial

Financial Analysis of International Airlines
Words: 5321 Length: 19 Document Type: Thesis

The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines' customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial

Financial Stakeholders in a Business Main Financial
Words: 2155 Length: 6 Document Type: Essay

Financial Stakeholders in a Business Main financial stakeholders, their power and influence in a business Stakeholders refer to people affected or have an interest in the objectives and operations of the business. The business has a variety of stakeholder segments, which have been broadly categorized as follows: The classification of stakeholders varies in terms of interests to the activities of the business and their power to influence key decisions. The fact is

Financial Management Calaveras Vineyards Sits on 220
Words: 781 Length: 3 Document Type: Case Study

Financial Management Calaveras Vineyards sits on 220 acres in Alameda Valley, California. Anne Clemens, a senior vice president at Goldengate Capital, received a loan proposal from Tom Howell, a managing director with NationsBank's investment-banking group. The brochure described the prospective management acquisition of Calaveras Vineyards and solicited Goldengate's participation in the $4.5 million senior financing facility. The facility would consist of a $2 million term loan and a revolving credit of

Financial Statement of Sainsbury PLC
Words: 2870 Length: 9 Document Type: Essay

Financial statements are produced in order to help stakeholders understand the financial condition of the entity in question. Different types of entities, however, have different reporting requirements. A self-employed individual has very different needs from a limited company, and these are different from not-for-profit organisations as well. This paper will examine some of these differences. The first class of business is the self-employed individual. There are no reporting standards for self-employed

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now