Business Analysis

1. Business Analysis:

Business analysis is nothing but a practice of enabling a change in enterprise by defining needs and recommendations solutions that deliver value to the stakeholders. In simple terms the fundamental concept of Business analysis is to recognize the business needs and then suggesting amicable solutions, procedures to attain the target.

Business analysis is very important for an organization because the requirements are critical activities, that must be performed to meet the organizational objectives. As the organizations use business analysis as a competitive advantage there is an increasing demand for business analysis practitioners. The business analysis is performed by:

• Facilitating the identification of problems or opportunity,
• Understanding the business environmental context and constrains,
• Analyzing requirements,
• Verifying requirements,
• Evaluating solutions.

Finally, Business analysis involves effort and variety of domains from identifying the needs of the business to solution implementation.

2. Business Analyst:

A business analyst is a person who performs business analysis tasks in the context of programs and projects. The role of business analyst involves in aligning the designed and delivered solutions with the needs of stakeholders. The activities that business analyst perform includes understanding enterprise problems and goals,

• Analyzing needs and solutions,
• Devising strategies,
• Driving changes,
• Facilitating stakeholder collaboration.

The Apple was founded in April 1976 by late Steve Jobs, Steve Wozniak and Ronald Wayne in USA. The company’s initial business was limited to only sell and develop Steve Wozniak’s Apple I and II personal computers. Basing on the instant success of the company’s Apple I & II computers, the company went public in 1980. In 2007 Steve Jobs renamed the company from Apple Computer, Inc., to Apple Inc. since then the company has entered in manufacturing of electronic consumer goods and found instant success.

Apple Inc has become one of the leading global company in manufacturing iconic electronic consumer goods and developing computer software. The company has been a pioneer in changing the entire landscape of the mobile phone industry with the introduction of iPhone. Technically the invention of world class iPhone has been the inception for the technological advancements globally.

Apple Inc is known for its luxurious products such as iPhone, iMac, iPad, iPod, iWatch, Apple TV and home pods. Not only products but the company also develops software such as iOS, MacOS, WatchOS and TvOS. As of August 2018, Apple Inc became the world’s first trillion-dollar company. As of 2018, Apple Inc. has 506 retail stores approximately in 25 different countries around the world.

3. Scope:

The Apple company is arguably the most successful company currently in the world. It will be hard to analysis the company because the company is not limited to either a single product or to a single country, it has its stores, factories and headquarters in more than 20 countries.

So therefore, this report will be confined and focused on working structure of the retail stores and sales of apple products in UK. This includes the macro factors such as the upcoming Brexit, Trumps tax cuts, Conflict between USA & China (trade traffic) and tough competition from other companies

4. Objective:

The objective of this report is to critically analysis the structure, functioning and sales of the Apple retail stores in the UK at the same time taking all the macro factors into consideration that may or may not affect the functioning of the retail stores and sales of the world class products in the UK. The outcome of this project will be evaluated by using the tools and techniques and the report will be focused on the structure, functioning and sales of Apple products in the UK.

5. Tools and Technique:

Basing on the objective of the project, this report is going to solely focused on the structure, functioning and sales of the Apple products in the UK by taking the above-mentioned macro factors into consideration. To give necessary recommendations various tools and techniques have been used.

The analysis of the report will be purely based on the following tools and techniques such as PESTLE Analysis, Resource Audit, Rich Picture, DFD Context Diagram, CATWOE Analysis, Interest/Power Grid, Decision Table, UML Use Case Diagrams and the Use Case Description, Level 1 DFD Diagram and the Description and the UML Class and Sequence Diagram.5.1 PESTLE Analysis:

In a company there could be many factors that might affect the structure, planning, and strategy. These factors are commonly known as macro environmental factors. In simple terms, the factors that out of direct control by an organization but can still influence and effect the organization. PESTLE Analysis is a tool which is used to critically evaluate the macro environmental factors that can impact an organization.

The PESTLE acronym describes the six environmental factors that might affect the organization, they are namely the political, economic, social-cultural, technological, legal and Environmental developments that the organization must consider. The PESTLE tools are well suited for to analysis the structure and functioning of Apple stores in UK as it is the largest publicly traded company in the world. It is important to examine all the factors to find out what factors are more affecting.

5.2 Resource Audit:

Resource Audit helps a company to understand and know its strengths and weaknesses on the resources that it possesses. By conducting a resource audit, a company can maximize its opportunities to gain profits and minimize its risks. A resource audit is the way of examining everything that a company have or has accessible to it.

These resources are not only confined to the profits, cash flow and stock but it can go up against numerous structures. The resource audit of a company is probably going to be one of a kind since it will mull over explicit necessities that a company has for things like involvement and learning in a specific field.

The resource audit will result in the strategic capability which will be very useful to a company. The resources in the resource audit are physical resources, human resources, financial resources and intangibles. The analysis of Apple retail stores in the UK is going to be intangible, so the resource audit is very helpful in determining whether the resources that are affecting or strengthening the sales.

5.3 Rich Picture:

The rich picture diagram is a way of solving a problem creatively. It is a unique way of acknowledging a problem and expressing the recommendations or solutions through diagrams to create a preliminary mental model. Rich picture is also used as an open discussion for business analysts by projecting it on the board for solutions and ideas to solve a problem. Rich picture can be drawn by anyone as it is very accessible.

But it is not as easy as it appears to be because the diagram should be drawn with in an organizational point of view highlighting and pinpointing the problems at the same time recommending the solution. One of the advantages of rich picture diagram is that it clearly shows the nexus between various factors and its various elements. If it is drawn perfectly then it can be easily understood by anyone. Rich Picture is a perfect way to showcase the structure and functioning of Apple Retail stores in the UK visually.

5.4 DFD Context Diagram:

Data Flow Diagram is nothing but a way of representing the data flow in a system. The DFD is the best option in identifying the consumption of data in a company. As per the diagram consideration it can be either automated or manual. The DFD uses defined symbols like arrow, circles and rectangles in a diagram to represent the data flow in a system. The DFD charts can range from simple to in-depth view in representing the data flow.

5.5 CATWOE Analysis:

• CATWOE Analysis is based on a company’s stakeholders perspective.
• By examining on behalf of the stakeholders through critical thinking approach.
• One of the main factor that needs to be taken into consideration is that by taking various factors into consideration CATWOE analysis is been done.

5.6 Power/Interest Grid:

• It is mainly based on the analysis of stakeholders.
• It can show the interest levels of the stakeholders.
• This is a tool that focuses on the key stakeholders who can make or break the project.
• The tool identifies where the actual power and control is, and it recommends in undertaking the better choices for the profits of the stakeholders.

5.7 Decision Tree:

1. It is an excellent tool which represents the solutions of a company in a possible graphic.
2. It is a complex tool which can be used to deal with logical problems in a very precise manner.
3. It is a guide which shows a clear picture of a company’s structure.

5.8 UML Use Case Diagrams and Use Case Description:

• It is a great tool for a business analyst.
• It is used to representation of functionality included within the system.
• It is showcases a functional requirement in a unique way.

5.9 Level 0 DFD Diagram and the Description:

• It includes only one process.
• Each process has its own unique ID.

5.10 Level 1 DFD Diagram and the Description:

• This level is a subsystem of level 0.
• It helps in categorizing the nexus between the subsystems.
• Each subsystem will get its own unique ID and the result will be given to each subsystem.

5.11 UML Class and Sequence Diagram:

• UML class diagrams demonstrate a unique set of frameworks by showcasing its classes.
• They are very valuable set of graphs.
• UML diagram consists of five attributes.

UML sequence diagram demonstrates the connection between the objects in a timely manner.

• It uses the logical view framework.
• It has four different objects.

6. STRATEGY ANALYSIS

The Apple company is the biggest tech giant company in the world. Due to its worldwide popularity, the image of the company is impacted by few factors. For better understanding of the challenges, the strategy analysis is used. The PESTEL Analysis is used as an external environmental analysis and the Resource Audit will be used as an internal audit. These two analyses will be on the Apple Company.

6.1 PESTEL Analysis: –

PESTEL stands for Political, Economic, Social-cultural, Technological, Legal and Environmental developments.

P – [POLITICAL]:

Apple has always been haunted by political challenges in different countries. It is also noticeable factor that Apple a tech giant is the highest taxpayer company in the world. And political allegations like this these will directly impact on its revenue in UK and EU. Apple has moved its assembling factory to china to cover assembling costs and avoid import taxes of parts.

But the trump administration has been on a trade war with china which is resulting in increase of traffis. In addition, the US-China trade war substantially threatens Apple’s performance in China as China accounted for over 25% of Apples earnings in 2017 and is anticipated to emerge as Apples largest market.

It is worth noting that Apples revenues in China may want to be negatively impacted via any retaliatory strikes via Beijing. In 2017, Apple received over $44.7 billion in revenues with the aid of transport 41million iPhones to China making it the fifth greatest participant in China’s smartphone market.

Brexit: With the Brexit is right around the corner and there is no clarity yet on the Brexit deal. By taking the factors of US-China trade war and the Brexit issue there is clear indication of the rise in the prices of all the apple products, delays in imports etc.

E – [ECONOMICAL]:

Despite the back and forth on the Brexit in 1028, the UK financial system held up well. It was also declared from the Office for National Statistics (ONS) that the UK was commencing to get better from a decade since the financial crisis. Economic factors are of essential significance for any company, whether its market is local, regional, country wide or international.

In the context of world business this importance grows for there are several economies whose overall performance mutually affects the brands’ revenue and profits. This is additionally the case with Apple. The importance of Asian markets has grown and China and India each have emerged as achievable markets for the Western brands. Better economic overall performance of the world financial system capacity higher purchasing strength of the buyers which in turn capability higher sales.

In case of Apple, its products are recognised for their top rate fees which potential they are not supposed for the decrease quit market. It is also the foremost purpose that Apple has not been able to penetrate the Indian market deep which is presently dominated by using manufacturers like Samsung.

Except in the developed world, customers are nonetheless price sensitive. This is a vital factor that influences Apple’s sales. China should expand the labour prices (wages) in future which might suggest an upward push in product ion fees and loss of profits. Increased competition has also affected Apple and it has misplaced a sizable market share to manufacturers like Lenovo in Laptop and PC sales. Dollar has grown more advantageous since the recession which capability in addition loss of earnings for Apple worldwide.

S – [SOCIAL-CULTURAL]:

The importance of the social elements can be understood from the fact that anti US sentiments in number of markets influence the income and profits of the US brands. Apart from it, changing preferences and tastes additionally affect income of precise products. Lifestyle elements are also importantly related to the income of top class products.

In the Eastern nations, lifestyle factors affect people’s desire of smartphones. Several of the Apple products do no longer suit the average Asian buyer or any person from any region. The urbanization trends in China and India can prove favourable for the brand. The economic boom rate in Africa has accelerated but the recognition of Apple products in these areas is low.

In most areas Apple merchandise are nevertheless unheard of due to lack of technological sources. In the Asian markets too, the popularity and company picture of Apple is now not as top as in US. It is why in PC income Apple misplaced its market share to brands like Lenovo and HP which have a better company photograph in these markets. Overall, Apple products are greater likeminded with the existence of shoppers in the developed world.

T – [TECHNOLOGICAL]:

Apple is a tech giant and so it is certain to be affected via technological changes. The past decade has considered speedy technological adjustments which have noticeably altered the market dynamics. Due to the tough competition, Apple is on the verge of losing its role to Google in the Fortune list of world’s most treasured brands.

The upward push in the variety of opponents which are offering matching technological price at decrease expenses has also radically affected Apple’s earnings and revenue. While Lenovo and HP maintained their market role in PC industry, Apple misplaced significantly. The reasons are each technological and economical. Growth in mobile technological know-how can force income of I-phones but hurts Mac sales. Google has entered the smartphone business with Nexus and Pixel.

These products are also a hazard to sales of I-phones. In the Asian markets, Samsung and Google are extra famous because they grant similar features at a whole lot decrease prices. Local opponents have brought competing merchandise and offerings that can supply the identical advantages at lower costs. Overall, countless Apple rivals have risen in the past few years whose products are more appealing to the clients in the growing world.

E – [ENVIRONMENTAL]:

The new Apple headquarters (Apple Park) which is located in the Cupertino, California is run on 95% of solar power. Apple has focused on the introduction of renewable power to offset its environmental impact. In 2015, 93% of the power used by way of Apple got here from renewable sources. Its Singapore amenities are powered by way of a 32-megawatt photo voltaic task and in China Apple is planning to add 170 megawatts of photo voltaic strength to its capability. Overtime, Apple has also centred on decreasing toxins from its products.

L – [LEGAL]:

The biggest challenge that a company could face is through laws and regulations. If you disobey the laws and regulations, then there will be huge number of fines or seizures.

The laws are not only limited to products, but they are also related to trades, labor and environment. Intellectual property law guidelines and patent related rules can additionally be a challenge for the predominant tech players. Apple faced a copyright claim for using the same design as Samsung and from one small start-up in 2016.

Sources additionally state that Apple has entered murky waters with its Apple Pay. This could carry Apple into a new sector of bitter financial regulations.

Apple has plans of similarly diversification into new areas. This should carry extra compliance associated burden for the tech brand.

Studies have demonstrated that paying little mind to size, accounting firms that offer monetary administrations reliably produce a larger number of incomes than those that don’t. Regardless, as of June 2000 short of what half of CPA firms were conveying fiscal administrations. Firms intrigued by venturing into financial services must consider all the potential alternatives and hope to use no less than six to nine months arranging before offering monetary administrations. The greatest attention and regularly the greatest obstacle for firms venturing into budgetary administrations is picking a plan of action.

Decisions incorporate building a financial services firm without any preparation, securing a current monetary administrations firm, or Joint-wandering with a current money related administrations firm. Each one model has preferences and burdens. Beginning starting with no outside help. Despite the fact that this might be feasible for bigger organizations, it is typically not the best choice for little to moderate sized bookkeeping firms. Beginning without any preparation is by a wide margin the most troublesome and lavish methodology.

Furthermore, Ratio of urban and rural population among the 24 million people is 20% in urban and 80% In rural, we can assumed that Serenade is less- evolving country as the population In rural Is higher than urban area. We check on income distribution to know how a nation’s total GAP distributed among Its population. The lowest income distribution is 20% of population earned 5% from the total income. While highest income distribution is 20% of population earned 80% of the total income, which may potentially to establish numerous markets for luxury good. It is more profitable from firm to operate business in area of resident with higher Income because their purchasing power Is stronger. Most of the main exports in Serenade seem to be agriculture resource and interacted such as clothing, textiles, tea, gems, rubber, coconut, etc. This proves that Serenade is a natural resource rich country and less-developing country. They imported capital goods such as crude oil, petroleum products, vehicles, fabric, etc.

This show that economic structure of Serenade is more concentrated In primary structure, which is based on the extraction of agriculture resource and handcrafted. Since they Imported vehicles and petroleum product, this might Invest In secondary industry including manufacturing to gain more economic in the future. As the rural area of Serenade has not well developed, it has the potential to get into the market at first and gain the first-mover advantages and create a new market share of developing in agriculture sector.

Moreover, the total export volume is higher than total Import volume in Serenade, the gap In between is $40 billion. Most of the export products In Serenade tend to be natural resources. Nature resources are limited and might flash In one day, moreover, with the Invention of vehicles may use solar energy instead of petroleum in the future. The Democratic Republic of Serenade form of government may be a great advantage for expending firm at the country. It’s an elected executive president with elected parliament.

One of the commonly attributed advantages to parliamentary systems that It’s faster and easier to pass legislation. Besides that, Serenade Is also known as a member of united Nation, there are non- tariff barriers or less barrier. The U. S. Has reducing Serenade’s high tariffs on agricultural products and opening the market for U. S. Agricultural biotechnology products. They also providing more certainty and transparency in Sir Land’s government procurement, and integrating U. S. Chemical assistance Into the Government of Serenade’s overall PR enforcement plan. Therefore, Serenade may have greater potential to provide less cellular penetration and adult literacy rate prove that the people of Serenade are connected to the internet frequently ad highly educated. Since the people has develop technologies to get access to new product, this making it possible for firm to establish a marketplace through online.

According to the survey, Australians have embraced healthy lifestyles, especially omen who are the main target market concerned about health diet, and also, Australian mothers care about their children’ health, and Yacht’s goal is bring healthy smiles to faces everywhere. The healthy lifestyles match the goals of Weakly, giving Weakly the strength to develop in Australia. Weakness for Weakly: Weakly is a fermented milk drink, it also is a milk-based, and so it needs to be refrigerated, so, some outlets and groceries stores would be unsuitable.

Although Weakly is five bottles per pack, each bottle is too small, meaning it is not kibbles amongst other refrigerated products such as yogurt, and milk in the store. When people go to buy the refrigerated products, they may not notice Weakly. Weakly is not really popular around Australia, some people even do not know what is Weakly, which result that when people see Weakly in the supermarket, or stores, they will not go to try them, as they are afraid to try unknown products.

Weakly and yogurt are the same products that bring health for people’s body, however Australians prefer buy yogurt, because yogurt can be eaten with other food and is heaper than Weakly. Weakly can only be drunk alone, which is not enough variety for people. Opportunities for Weakly: The advertising campaign using the Weakly cartoon character, which is already well established, and this cartoon character used to appeal to children will target children easily. Children can become part of the target market for Weakly.

Because Weakly is a healthy drink, it can be included as part of the breakfast, afternoon tea in pre-schools, primary schools and high school boarding houses. It also can be on the breakfast menu in hotels or fast food outlets. Weakly Australia produces Weakly light, which can attract women who are concerning about health. Yacht’s small snaps AT Doodle Is very easy to carry In ten nag, It noels people won have busy lifestyle to carry one and drink it easily.

Threats to Weakly: There too many of the same kind of health foods and proboscis foods on the market in a form more recognizable to the public, such as yogurt, yogurt ice-cream, which is more popular for people, and also those proportion foods, which are cheaper than Weakly, so Weakly may face tough competition in the market. Advertising Analysis Weakly Australia advertises through various sources, which including: Television, radio, magazines, the internet, Supermarket – Demonstrations, and Point of Sale advertising e. G. Posters, pens, bookmarks.

Also every Yacht’s advertising have its slogans: Everybody. Everyday’ ‘Get the Goodness in You’ ‘Have you had yours today? ‘ ‘Made Fresh in Australia’ Weakly Australia began in Australia in 1994; it has a lot of advertising. Yacht’s advertising contains its objective for public. (The print ads and TV ad’s description are attached in appendix B, C, and D) Advertising Objectives Weakly uses advertising to raise brand awareness amongst Australian consumers. Being the first fermented milk product on the Australian market, Weakly has not fully been accepted as a differentiated product.

Weakly must use Advertising to inform consumers about Weakly, raising brand awareness about the product and its health benefits for people. Yacht’s advertising objective is to differentiate the product from its competitors. Weakly emphasizes ingredients such as Lasciviously cases Shirt strain as being unique to Weakly. The company differentiates the product through claims that the specially cultivated Lasciviously cases Shirt strain is only found in Weakly (see print ad in appendix).

This claim is a strong point of differentiation for Weakly in consumer’s eyes. Moreover, Yacht’s advertising main objective is to inform consumers that “every Weakly contains friendly bacteria”, which balances good health for everybody. Yacht’s objective in their advertising is to promote this healthy life for everyone. It is emphasizing that Weakly is a healthy product. Advertising Problem Weakly faces some problems in their advertising. Since Weakly is relatively new to Australian consumers, they don’t know the product very well.

Weakly must advertise to promote the product to consumers. Weakly seldom advertises through media channel, such as TV commercial breaks or magazines. This lack of advertising makes the target market unaware of the product. Yacht’s print ads carry too many messages for consumers (see appendix), and doesn’t attract the target market to read those messages. The ad is limited in its scope, giving information to the audience that Weakly is healthy for everyone. It places too much emphasis on target women as the consumer.

For example, one print ad uses a Tamale Tessellated player as ten central ensure, seemingly targeting women only. Moreover, Yacht’s TV ads face problems too. Many of the campaign’s ads show doctor’s testing the effect of Yacht’s good bacteria through experiments. These ads don’t attract the target market to watch the ads, and don’t give the audience a good impression of the product. Yacht’s only emphasis through its advertising is on the “good bacteria”. The ads however, don’t talk about how it tastes, what benefits it can offer to people, which are important to the target market.

Business analysis- Foreign banks in China 1. Introduction With the globalization of investment markets, foreign banks are seeking opportunity to incorporate in China. Because during global economic crisis, most enterprises are facing the low profit problem but China seems to be an exception. China still kept a high rate development for these years. Moreover, China is becoming one of the cores of the world’s economy. However, the rising prices and market volatility seems to force China in to an extreme challenge.

And the regulatory policy of the government a pressure needs to be face for the banks all over the world. There are several types of banks in China. First one is the bank operated directly by the central government People’s Bank of China (POOCH), which is the note-issuing bank. The second type is the stated-owned commercial bank, such as, the BOCA, CUBIC, CAB, BBC; the four major banks are dominating the overall China market. Generally, the four banks account for more than 80% of the total business loans and deposits of the Chinese urban market.

The third types are policy banks, which refer to Agricultural Development Banks of China, specialize in policy loans including state serration and purchase of agriculture by-products and development of agriculture. And China Development Bank specializes in providing financial support to important construction projects of the country. The Export-Import Bank of China, providing financial support for the import and export trades in the state. The fourth type of bank in China is Joint-stock and other commercial banks.

From late asses, various provinces and cities have been permitted to set up Joint-stock banks and other commercial banks through capital rose locally and abroad. The last type is foreign inks, there are 53 branches of foreign banks operating in China get the permission from People’s Bank of China to conduct ARM business. Their business sectors are gradually boarded after China became a member of World Trade Organization (WTFO). For a long term, foreign retail bank entry China banking sector was strictly regulated by the policy and entry requirement.

In addition, there were several rules and regulation to restrict foreign retail banks activities in mainland China. For example, only Shanghai and Sheehan were open to foreign retail bank until 2001 and the reign retail banks were only allowed to conduct business with foreign company and individual in these two cities. Following the commencement of China’s 1978 economic reform program, foreign banks were allowed to build presence in mainland that offered consultant services only for foreign firms operated business in mainland China.

They were allowed to enter the local to set up representative offices by four forms of entry: foreign bank branch; wholly owned foreign banks; Joint venture and foreign strategic investment. And since late asses with the economic reform program the foreign brand branches enjoyed a Taster growth. For Instance, ten TLS Drain was Adult In 1 1 In sneeze. By the end of 2006, 74 foreign bank branches of 22 countries had set up 209 branches and 79 sub-branches in 25 cities. Towards a more accurate measure of foreign bank entry and its impact on domestic banking performance: The case of China) according to a survey conducted by KEMP in 2012, the foreign banks enjoyed the most profitable year in China during 2011. Profit after tax raised 115% to RHOMB. 73 billion in 201 Compared to ARMS. 78 billion in 2010. Total asset increased by 24% to ARMS. 5 trillion at the end of 2011. Market share of foreign banks reached 1. 93% from 1. 83%. 2. Information background HASH, HASH (China) limited company, was founded on 29th, March, 2007 and open officially on 2nd , April ,2007, the headquarter was set in Shanghai, it’s the branch office of Hong Kong Shanghai HASH limited company. ( HASH Annual Report,2012) On March 23rd 2012, HASH has rewarded as winner of the Best Foreign Retail Bank in China for the 2011 year during the 1 lath International Excellence in Retail Financial Service Awards Event. HASH present the strength in the foreign retail banking in China market has led itself a virtual shoo-in for this honor. HASH in China, 2012) In China, HASH own one of the largest service networks among all the foreign banks in mainland China with 132 outlets in 42 cities crossing 20 provinces/ municipalities. The provinces approximately cover 86% of China’s GAP and 96% trade in China. These 42 cities represent approximately 22% (mm) of China’s total population. (HASH Annual Report, 2012) Standard, Chartered Bank, Standard, Chartered Bank set up its first business in Shanghai in 1858 and has remained in operation throughout the past 1 50 years.

Standard, Chartered Bank is en of the first foreign retail banks to start incorporating in China. (Standard, Chartered Annual Report, 2012). On 9th, January,2013 the Standard Chartered Bank( China) Limited announced to its 100 branch in Chinese Mainland. (Standard Chartered Bank Opens the 10th Outlet in China,2013). The Bank has been named the Best Foreign Retail Bank in China at the Asian Banker’s Excellence in Retail Financial Service 2008 Award Ceremony (Standard Chartered- leading the way in Asia, Africa and the Middle East,2013).

Citibank, One of the world’s leading global banks, is the consumer banking branch of financial revise giant Citreous. The bank founded in 1812, as the City Bank of New York, later First Bank of New York. So far, Citreous is the third largest bank holding company In ten s Day total assets, Toweling Bank AT America Ana Oxymoron cannas. The company has retail banking business in more than 160 countries and regions in the world. In China, thirteen corporate bank branches were launched (Beijing, Changes, Changed, Cocooning, Dahlia, Guanos, Gunning, Hangout, Nanjing, Shanghai, Sheehan, Tannin, Wax).

Citreous would be the first non-Asian foreign bank to launch credit cards service in China. Citibank (China) offer the credit cards to its’ Chinese customers in late 2012. Before this, Cit had offered a ‘co-branded’ credit card with Shanghai Pudding Development Bank (SPED) in 2003. 1. Maim of the Report The report seeks to investigate in the foreign banks in China since China has Joined WTFO and the operating environment and business strategy has changed. HASH, Standard, Chartered Bank and Citibank are chosen out to be the representative of the foreign retail bank.

The aim of this report is to analyses the operating environment and competitive arena of the foreign banks industry in China. In addition, the report would find out whether the characteristic and the competitive advantage of the foreign competitors can help them to get a strong position in China or not, and what is its future development. 1. Structure of the Report The content of the report is mainly insists of 5 parts. The first part is the introduction of the background information and the three main foreign banks in China. The second part is based on PEST Analysis to find out the remote environment of foreign I banks in China.

The third part would analysis its’ operating environment and identify he important various contributing factors through Porter’s Five Force Analysis. In the following part, a conclusion of the previous analysis would be presented. The evaluation of PEST Analysis and Porter’s Five Forces Analysis would be displayed in the final part. In this part, a future development of foreign banks in China would also be showed. PEST Analysis 2. 1 Political environment 2. 1. 1 China Jotted WTFO China has been a member of WTFO since 11 December 2001. .. (; China’s WTFO Accession and Long-Term Profitability of Chinese Firms>, Eng Kiang& Paul .

A. Stuntman, 2012). After the accession in WTFO, limitation for foreign banks is gradually relaxed by the end of 2001. Within the five years after China Joint WTFO, the type of clients and location restrictions are substantially lifted. From December 2006, foreign banks enjoy no more differential limitation to entry and could enjoy the same policy as local banks First of all, foreign banks are permitted to enter China to set up representative offices by four forms of entry: foreign bank branch; wholly owned foreign banks; Joint ventures; and foreign strategic investment.

Of these types of banks, foreign brand ranches take up the largest percentage and widest coverage in mainland China. As a result a great amount AT Torrent Dank entered Canaan market Ana ten exalters foreign banks have an expansion plan for their business. The total number of foreign banking entities doubled and total banking assets tripled from 2003 to 2007. (table) In addition, like the domestic banks, foreign banks’ major business in China are taking deposits and making loans. A significant characters of foreign banking is that they collected more loans than they extend deposits. Figure) Foreign banks’ ability to elect deposits, especially Remind (ARM), was mainly restricted by government . This situation started changing after the WTFO accession, especially after 2003 (Fig. ). There has been a rapid rise in loans followed by an increasing in deposits, showing a higher rate expansion of business with relaxed restrictions. What’s more since 2005, loans have substantially passed foreign liabilities with the difference being financed by dramatically raising local deposits as well as loans from the domestic market. Overall, foreign banks engaged more deeply into the local market.

As a result, incorporated foreign banks are subject to the same regulation within China as domestic banks at present and are able to compete directly with them in China. 2. 1. 2 Government regulation The regulatory requirements are various according to different status. For foreign bank branch offices their ARM business to Chinese citizens needs to be subjected to China Bank Regulatory Commission (CB) approval, they cannot provide ARM business to Chinese citizens except for acceptance of deposits in over 1 million ARM. While the locally incorporated WOOF or Joint Venture can provide ARM business to

Chinese citizens. As to minimum capital, the foreign bank branch office can operating fund of ARM 200 million, whereas the locally incorporated WOOF or Join Venture can registered capital of ARM 1 billion in freely convertible currency. But there is no restriction o f loan to deposit ratio for foreign bank branch office, while the locally incorporated WOOF or Joint Venture must be less than 75 percent (a grace period to 21 DECK,2011 provided). The Chinese government recently published a number of significant institutional changes, in order to improve domestic banks for the fierce competition.

These hangers would enable foreign banks a remarkable supervised and market-driven environment for operations in mainland China. With the improved financial regulation and supervision to maintain a stable and secure environment for commercial banks to operate and the interest rate of bank depositors are secure. (KEMP,2008) The new supervise regulation allows the central bank to focus on the formulation and implement of monetary policy, whereas the newly founded commission focuses on effective bank supervision and revising and enforcing regulations aimed at facility licensing.

However, the regulation is continually expand and become complex for reign banks. Each year the government will publish new perspectives to the scope of the regulation (KEMP,2012). Although ten Torrent Dank nave to race ten Doolittle regulatory environment In a long term, they realized the necessary of financial reform and looking forward to the internationalization of ARM and the gradual liberalizing of interest rates. 2. 1. 3 Regulation supervisor The POOCH and CB have already revise their regulation times to ensure the standards for foreign and local banks and create an equal compete environment.

These regulators are aim to improve the current policies, foreign banks must abide y additional regulations, which include local laws, department rules and regulations, operational guidance documents and notice documents. Among these, China’s regulators monitor focus on five essential fields: stability, independence, compliance, risk and operational management. After foreign banks’ entry to China, the CB also monitor their independence from their parent company. With the support of the parent bank, the locally incorporated must make sure it’s operation is independent. N this case, foreign banks have to develop their own system including risk identification, risk supervision and risk evaluation functions. Therefore, the banks must make sure their risk management employees are qualified to handle the risk without relying on the risk management functions. 2. 2 Economic Environment 2. 2. 1 Global Environment Crisis Since the financial crisis in 2008, the global economy is recovering within these four years. According to the banks June 2012 Global economic prospects update, the global economy is expected to reach a 2. 5% expansion in 2012 and 3% in 2013.

Developing countries economy growth will slow down to 5. 3% while developed countries will only expand at the rate of 1. 4 %( 2011, the World Bank group). Following the dramatic fall of the global economy, the growth of China economy fell from 13% in 2007 to 6. 8% in 2008. However, the government response to the crash immediately by shaping a 4 trillion China Yuan (ARM) stimulus package in November 2008. Meanwhile ,the central bank, the People’s Bank of China(BOBS), lower the growth rate of credit and interest rate deeply and the boost of board money. 2010, You. Y)But only 4-year is not enough to see whether the economy has recovered. However, with the stimulus package to save the economy the investment rate tend to be higher than the economy crisis. According to Joining Net database, China’s investment rate has grown from 46% in 2007 to 49% in 2008 and the trend of growth is quite sustainable from the pre economy crisis period. As a developing country China’s investment rate is dramatically higher than its neighbor, Korea and Japan compared to their peak growth period.

Generally, it seems there is no need to worry about China’s ability to recovery from the economy crisis. 2. 2. 2 Internationalization of ARM and liberation of interest rate With China become the second largest economic in the world over the past years by its’ GAP. The internationalization of ARM (Remind) has started in the process. Although there are some The liberation of interest rate convinces that it will place teem In a priory position. A more open market needles teem to De more competitive against the domestic banks.

Nevertheless the timing is still uncertainty as well as the level of the liberation even if most of the banks believe it will be in processing soon and the reactions of the four big banks are still unknown. And the banks scale could make a big difference to the foreign banks’ response to interest rate liberalizing (PWS,2012). With the internationalization of ARM in the future and the interest rate reform will bring more opportunities to foreign banks in China as it will cause a structure reform in banking industry.

It will definitely help them to show their expertise in debt capital markets, financial products, interest rate and currency swaps business. 2. 2. 3 GAP According to the statistics by National Bureau of Statistics of China, the development of China economy has kept rapidly and stately since last century. (Figure) Chinese IN per capita APP 7,520 US dollar in 2010, increase to 8,390 US dollar 2011 . The GAP Roth rate in 2010 and 2011 was 10% and 9% respectively. (www. Workloads. Org)There is a positive correlation between per capita GAP and loan amount of personal credit, according to a research on economics development theory.

Hence, the positive correlation implies there is massive potential for the growth of capital market. *Source: World Development Indicators 2. 3 Social-cultural Environment 2. 3. 1 Acceptance of Credit increase ( Credit card business analysis of Bank of China- Is BOCA credit card competitive? ) The first credit card in China was issued by Bank Of China (BOCA) in 1985, one of the most well-known state owned- bank. At that time, owning a credit card was regarded as a symbol of social status. (Quo,T,and Chunk. P, 2010) Because only people who are rich, powerful, decent are qualified to own a credit card.

However, with the growth of middle-class population, more people adopt the usage of new financial instruments such as credit card, insurances, purchasing stock as an investment instead of depositing money to gain interest. People find it more convenient to pay by credit card instead of cash. Today, the foreign banks become competitive competitor to the domestic banks in this credit card business. 2. . 3 Change in financial habits Because the undeveloped social secure system Chinese people has a great emphasize on saving the money. Chinese people have a great different in financial habits with western people.

For western people they would prefer pay a debt for their purchase, while traditional Chinese people would rather save enough money for their purchase. (Comparison of Chinese and American Consumption Tradition, 2005) However, the western concept of “consuming first, paid back later” has gradually accepted in China, especially the raising middle-class population. These people are ell-educated and more likely to invest in financial products than saving the money in banks. Even it’s more risky to invest in financial products, such as, purchase stock, out ten rate AT return Is populously enlarge tan ten Interest AT saving. Now I already many years into the initial introduction, the urban Chinese consumers are getting more and more confident in using credit cards as a primary payment tool. In big cities like Beijing and Shanghai, the usage rate has reached 44. 5% this year. In middle-sized cities the number is also high at 35%. On average, more than 20% are new users from last year. “(Mange, 2010). In addition, people may have the emergency demand for a big amount of cash sometimes, therefore the personal loan should have a potential growth. With this context, there is far more potential for foreign banks to development their business in China. . 4 Technological Environment 2. 4. 1 Automatic Teller Machine (ATM) ATM is a stand-alone machine set inside or outside of banks to serve consumer since sass’s. With the installed network system, ATM can served consumers efficiently anywhere. Moreover, the information of consumer’s account can be updated with the real-time system, which is time saving and secure. In the past, ATM can only be used by the deposit card of its own banks, but with the development of technology the system is access able to other financial organizations such as VISA, Master Card, American Express,etc.

In order to better serve the consumers, if they don’t have the deposit card of that bank, they can still overdraw money through their credit cards anywhere when they need money. And the relative information will be sent through the system back to credit card information center. Recently, the ATM has developed a new function which called Viewpoint Archive Services” innovated by MM. This new function enable bank to handle queue more efficiently. Through this service it save the banks a lot of resource and more convenient to consumers. At present, the ATM machine has played a significant role in people’s daily life.

Other than withdraw money, people can check their account balance, transform money between different accounts, some certain ATM can deposit money and even deposit queue. But because of the average education level in China is not high; banks may need to recruit extra guidance for the ATM inside the outlets. 2. 4. 2 Customer relationship management (CRM) It’s a system about organizations to maintain the relationship with consumer; it helps the front line staff to make direct interaction with customer through e-mail, internet and automatic call. These are the high efficient way to reduce the operating cost for banks.

The banks should have database or data warehouse to store the massive information. Additional software are also needed such SPAS or ASS to do a further analysis. In particular, the front line staffs need to use the software for example Siebel System to support the consumer agent. In China, such system is lacking for the domestic banks. However, the foreign banks have experience in profiling their customer data. (Quo,T,and Chunk. P,2010) 3 Porters Have Forces Analyses The operating environment includes the suppliers to and buyers of the business in the focus competitive arena.

There are also considerations of the in-fighting between the businesses inside the competitive arena, with their rivalry. ( Porter’s famous five forces model of operating environment is a perfect model to illustrate the bargaining power of suppliers, the bargaining power of the buyers, the threat of new entrants and the threat from substitutes. (Figure) Each of the five forces will be analyzed in turns in this report. 3. 1 Power of suppliers (depositor) For commercial banks customers can be regarded as suppliers, for they make a deposit in the bank, which is part of the capital source.

Therefore, the depositors will make a comparison between banks before making decisions. To think about Just save the money in banks or invest on other financial products such as debenture, purchasing stock. ( Yanking L and Long Z,2012) With the improvement of life standard and education level, the suppliers have more channels to get the information they need , and have various demand for financial products. On the other hand, the competition tends to be more intensive between domestic banks and foreign banks. For example, the competition of credit card business is intense among the banks.

VISA, Master Card and American Express occupies the most market share in credit card business in the world (Mange, 2010). Nevertheless, there are some other organizations also issue credit card. And people will also consider the reputation of the banks, for instance, HASH, Chartered standard and Cit bank are more familiar to the Chinese consumers. In the recent survey of these three banks has a outstanding performance. The foreign banks with more experience with high-profit customers and have a mature system to innovate new financial products.

While the domestic banks have limited experience on developing financial product and cannot offer that much choice to customer as their competitors. Hash’s customer accounts and net customer loans and advances has keep a growth at 13% and 22% respectively in China, which is the biggest profit contributor in Asia outside Hong Kong SARA. (HASH Annual Report,2012) Standard chartered ,income was raised by 30% to million US dollars, indicates strong growth in deposit and personal volumes, as ell as the improved mortgage margins and sustainable growth in SEEM (Standard Chartered Annual Report,2012). . 2 Power of buyer (borrower) As a high concentration of buyer industry, almost everyone cannot live without get in touch with bank. Almost every people need to use service of banks, such as deposit money, receive salary and make a loan, insurance and currency exchange . Len this context, concentration refers to the buyer is monopoly-many suppliers and only one customers, more specific, the customer can choose the bank they prefer but the banks cannot choose their customer. (Finial.

P, 2000) For most AT ten Nielsen, teeny get uses to ten stated-owned Dank, especially ten Log four stated-owned bank, BOCA, BBC, CUBIC, CAB. At present, Internet has played a significant role in people’s life, people can easily get the information they want through Internet. In another word, they have full information. Information can be regarded as power that the information is not only about the characteristics of the customer itself, but also information about the banks. Hence, they can make a comparison between the price and the service conveniently.

Especially, the interest rate and service charge are various from local banks and foreign banks, normally, reign banks charge higher service charge than local banks due to the high operation cost . And customers are quite sensitive to these, for it indicated them to draw out all or a great amount of capital from bank to bank or other institution. 3. Potential entrants In the post WTFO era, many countries Joined WTFO and with Internet effect m the barrier between banks become weaker.

The local or foreign financial institution or even non-financial institution are trying to get into bank industry, such as the famous IT companies like, Microsoft(China),Sony have the plan to entry the e-banking business in China . The A Lie Baa Baa group which is a famous BIB company has developed its’ online payment system and gain a great success in China. The operation cost for these new entrants can be low, because they only need to pay little money to build a website or integrate with non-financial organization such as consultant agency.

As the low operation cost, these organization won’t charge the consumer high switching cost to attract them. 3. 4 Threat of substituted Substitute play a significant role in bank industry, for consumers can easily to consider the offer that the banks provide better value service and money. (Finial. P, 2000) Depositor and investor would switch as long as the costs and related risks are not beyond acceptance. With the development of the capital market and the more disposable income of Chinese people, they have a great demand for new way to invest and new financial products.

Not only the financial institutions enjoy the equal compete places but also the non- financial institutions can get in the competition to take place some service of traditional banks. For example, A Lie Baa Baa Group is famous for its All pay service in e- banking market and has become the market leader in e-bank market. Especially with he rapid development of e-business, the advantage of e banking is outstanding. There are four reasons for most people to use e-bank, firstly, the paperless work through computer or smartened has reduced the cost and more continents.

Secondly, the high efficiency and fast feedback, all the e-bank services are 24 hour operating, consumer can use it whenever they want. Next, low operation cost. Last but not least, easy to use. Consumer Just needs to log in and following the instruction until finish. 3 Intensity AT Rally One of the obvious advantages of foreign banks in China is that they have wider products offer. And the structured products and interest rate and currency swaps are also essential areas for their development in China. On the retail section, investment products were always occupied the first place probably recognizing the transformation will turn up.

Therefore, many foreign banks will focus on organic growth but acquisitions in different parts of the financial sector maintain a crucial part of banks’ strategies. Rivalry between domestic banks and foreign banks Local competitors: The major four specialized banks (I. E. , BOCA, CB, BBC, and CUBIC) have dominated the overall banking market in China in regard to assets and branch network. Bank Of China (BOCA), which specialized the foreign trade business. China Construction Bank (CB), which specialized in construction of infrastructure. Agriculture Bank of China (BBC), whose target consumer are from the rural area in China.

This paper is an in-depth business analysis of Apple Inc (AAPL). In this analysis, many areas of AAPL’s business will be discussed to determine the risk level associated with investing a portion of a mutual fund in this company. It will begin by discussing the strengths, weaknesses, opportunities, and threats (SWOT) of AAPL. Based on the information gained in the SWOT analysis, I will determine what information is most relevant in my decision to invest in AAPL.

I will identify AAPL’s stakeholders, internal and external, and describe their wants and needs. I will discuss how AAPL is fulfilling these stakeholder’s needs; if they are coming up short on fulfilling these needs, I will discuss what the company needs to do to ensure that they are indeed fulfilling these needs. AAPL: A Business Analysis SWOT Strengths Concerning strengths, AAPL has an abundance of them. AAPL is one of the most powerful companies in the world, if not the most powerful.

AAPL has amassed a cash reserve of $76. 2 billion dollars, which is roughly $2. 5 billion more than the United States Government’s coffers (Phillips, 2011). This cash reserve is mainly attributed to AAPL possessing some of the most loyal follows of any company on the planet. AAPL does not make products that are in high demand, but rather Apple products are in high demand because Apple makes them. Even with all of this mentioned, there is still plenty of room for AAPL to grow.

According to International Business Times (2011), the company has only a 4% – 5% market share on mobile phone, a similar market share on computer, and ” has opportunity to double or potentially even triple its market share in these end markets over the next few years, particularly with Greater China and international as underpenetrated opportunities. ” Weaknesses As for weaknesses, there are very few; two appear to be most glaring, AAPL is not very shareholder friendly and Steve Jobs is no longer the Chief-Executive-Officer (CEO).

Despite that AAPL is possibly the most cash rich company in the world, they have not paid out a dividend since November 21, 1995 (“Apple Inc. : Nasdaq:aapl Quotes & News – Google Finance”, 2011). For a mutual fund, dividends are a source of growth; without dividends, the only source of growth for a stock to increase in its index price. The other major weakness as mentioned before involves Steve Jobs stepping down as CEO on August 25, 2011 because of health reasons and Tim cook replacing him (Kane, 2011). With Jobs out and Cook in, there is some level of uncertainty with the future of AAPL and its ability to continue its dominating growth.

Opportunity Going back to the discussion in strengths, AAPL has a massive group of loyal followers and the size of this group is growing rapidly. AAPL has developed a reputation of producing high-quality products, so when a new product is released it tends to receive a very warm welcome from the buying public. Threats AAPL has two major threats, their products are very high priced and their products are copied easily. First, virtually every AAPL product currently on the market has a competing product which has similar functionality for a fraction of the price.

For instance at verizonwireless. com, the 32GB iPad2 with WiFi+3G sales for $729, where as, the 32GB Motorola Xoom with Wifi+3G (upgradable to 4G) sales for $599. The other major threat is that AAPL’s products are easily copied and has led them to sue and be sued for copyright infringement. Stakeholders AAPL, as any organization, has many stakeholders; in fact because of the size of AAPL, they more stakeholders than most organizations. As with any organization, AAPL has both internal and external stakeholders.

AAPL’s internal stakeholders include the employees, management, and the investors, while their external stakeholders include suppliers, lenders, and customers. Because of the financial health of the organization, AAPL is meeting the needs of all their stakeholders with possibly one exception. The exception could be the investors are not as taken care of as they could be; for the investor, it would probably be more advantageous for them to receive some dividends. With Steve Jobs leaving the organization, this may be a good opportunity for AAPL to change that trend and start rewarding their investors with a quarterly dividend.

Best Buy Contemporary Business Abstract This research paper focuses on the functionality of Best Buy’s website. It further discusses the how Best Buy promotes their products. There is a description about how their website informs the consumer about the capabilities of their products. Further there is an evaluation of the contact information which includes the many options for contacting them. Due to the large variety of the products offered by Best Buy there are many ways for them to customize products to the customer needs which they attribute their sustainability.

Also there is a discussion about the marketing strategies and what is in place on their website. Additionally there is an analysis of the corporation’s privacy policy and response to a security breach with recommendations on how to prevent further compromises. Describe and evaluate a major corporation’s Website in these four areas: (1) product information, (2) corporation’s contact information, (3) customization of products for customers, and (4) customer information at purchase. Best Buy Incorporated, founded by Richard Schulze in 1966, is a top provider of electronics (Form 10K, 2011).

Best Buy is also a Fortune 500 hundred company is considered the largest retailer in its class who dominates the market by accounting for 21 percent of the market (Form 10K, 2011). Best Buy Inc is also globally diverse with stores in Canada, China, United Kingdom and Mexico (Form 10K, 2011). Best Buy conduct online operations through many different brand names; BestBuy. com, BestBuy. ca, BestBuy. co. uk, BestBuyMobile. com, CarphoneWarehouse. com, Five-Star. com, FutureShop. ca, Geek Squad, Magnolia Audio Video, Napster. om, and PhoneHouse. com (Form 10K, 2011). Each brand name targets a specific market internationally. Best Buy employs a robust website which features all of their electronics, home office and entertainment products, appliances and services. When selecting an item the consumer has access to a multitude of information about the product. For example, when selecting a flat screen television the first thing that stands out is “free shipping” then right underneath is the price, both which is very important to the consumer.

Also on this page are credit card advertising and solicitation, protection plans and the ‘buy back’ program. Additionally they have a general description of the product features which gives basic information about the television. As a show of confidence in their product and the service they provide, there is a section dedicated for ‘customer reviews’ where those who has experienced the product can voice their opinion on a 1 to 5 scale. Best Buy shows the individual reviews and an average of the totals.

This can prove valuable to the consumer when needing the opinion of someone that has experienced the products functionality to give an assessment of its operation. Additionally there is a ‘specification’ section which gives more detailed description about the characteristics of the product. Further there is a ‘learn’ section which educates the consumer about the featured terms used when reading technical information on the product and a featured guide section which gives detailed information about research and development of the various types of products.

Finally Best Buy offers a ‘accessories’ section which give the customer suggested product that are compatible to the specific item which also can be purchase from their store. Best Buy’s corporate contact information link presents the customer with a whole host of information about the organization. The ‘about best buy’ link opens the book about the company. This link gives stock quote and the latest news releases on what the company is offering, tips on shopping and more.

There is also information on careers, a link for the investors and developers, sustainability, community relations, site map, and affiliate programs. The ‘contact us’ link offers many avenues in which to contact several departments within the corporate umbrella. The Best Buy corporate customer care supplies their postal and e-mail addresses and phone number. There is also a means to get in contact with the public relations department and vendor inquiries.

On the ‘Sustainability’ link Best Buy takes pride in educating customers on technology so they can make the correct decisions when in the market to purchase products to fit their use (Sustainability, 2011). Their site states, “Through education, influencing public policy and driving industry innovation, we want to help you learn about technology solutions and how to use them to enrich your life and our world at the same time (Sustainability, 2011). ” With the large variety of products and their willingness to educate consumers on their products shows they make a great ffort to satisfy their customers’ needs and to influence them to purchase products from them. When checking out Best buy provides the customer and option to purchase matching accessories and protection packages. Then there is an opportunity to subscribe as a recurring customer by checking out and building your profile which will save the customers information for future purchases that will speed up the checkout process or there is an option to check out as a guess which will only save the consumers information for the purpose of checking out.

Either way at this point is where the customer enters billing information to include; name, address, phone number, and e-mail address. Once the free delivery date has been selected then the customer is directed to the payment method window where the option to pay using a credit card or PayPal to pay for the items. This page also offers links to; conditions of use, legal notices, and privacy policy. On the privacy policy link Best Buy Web site employs TRUSTe and uses encryption technology to protect personal information.

Describe and evaluate three (3) of the corporation’s Internet marketing strategies and the competitive advantages its Website provides. Best buy utilizes differentiating product by applying the positioning concept by establishing their products in the mind of the consumers as soon as you visit their web site. They accomplish this by showing an array of products to gain the attention of the customer giving the impression since they have a large variety of products then there will be an item the consumer will want to buy.

In comparison the H. H. Gregg site which has a limited selection to choose from. Best Buy also uses the provide information strategy providing detailed information about each of their products and affording customers to write a review about their purchases gives the customer the most up to date information about their experience with their new item. In marketing, people, is a very important element in the promotion of the organizations product (3 Keys, 2009).

Word of mouth is the most effective advertisement to influence others to patronize the company (3 Keys, 2009). They also accentuate product value by offering extended warranty plans in addition to the factory warranty and they have also implemented a ‘buy back’ plan where the customer buys into the plan which guarantees the price Best Buy will pay for product purchased. All of these incentives prove Best Buy backs and has a strong confidence in their wide variety of products which gives them the competitive advantage.

Analyze and evaluate the corporation’s privacy / security policy and the corporation’s response to the security breach. Best Buy employ’s TRUSTe and encryption technology to protect the privacy of their customer personal information (Privacy, 2011). Within their privacy policy they advertise they take the customers privacy seriously (Privacy, 2011). It tells what information is collected, how it’s used, how it’s shared how they protect you information, and the customer choices regarding their personal information (Privacy, 2011).

They collect highly sensitive information to include; name, postal address, e-mails address, phone number, credit card number, driver’s licenses number, social security number when applying for credit and demographic information (Privacy, 2011). All of which if compromised would cause grave consequences for their customers. Additionally Best Buy admits they collect information through cookies which saves data on the customer’s personal computer (Privacy, 2011). But advertises the cookies are used to create a personalized shopping experience on their websites (Privacy, 2011).

Best buy uses this information for marketing practices, customer’s transactions, research and analysis, managing customer accounts, e-mail communications, and advertising (Privacy, 2011). They maintain this information for as long and the customer has an account with them and to comply with legal issues (Privacy, 2011). Best Buy shares customer’s information within their organizations other websites and legal ramification may require (Privacy, 2011). There is also a disclaimer Best Buy will share personal identifiable information in the event of a sale, merger, or disbanding (Privacy, 2011).

Best Buy victim to hackers recently which acquired access to customer files (Security Breach, 2011). Their reaction to the security breach was to inform customers of the breach and warned them to ignore emails asking for confidential information but acknowledged there credit card information was safe (Security Breach, 2011). Recommend and provide rationale for two (2) methods and/or tools to ensure greater security for customers One thing which seems to stick out the most is Best Buy will share personal identifiable information in the event the company disbands. It would be better to purge this information to avoid compromise.

When disbanded there is no guarantee the information would have the same protection engines in place as the company had while in business. There is not any mention of an outside computer security organization to monitor their systems for hacking. Since hacker have stepped up their effort and have been successful on many occasions it would be wise to step up security measures in order to prevent future compromise. Conclusion This analysis was conducted to provide a description of best Buy’s website and its functionality. How the products are displayed, promoted and the robust details they give about each of their item.

Best Buy uses many marketing strategies to promote their products which give them the competitive advantage. Additionally there is a look in Best Buy’s security practices and a how compromises are handled. References United States Securities and Exchange Commission Form 10K (2011, May). Best Buy Corporation, Commission File Number 1-9595. 4-7. Retrieved November 25, 2011, from http://phx. corporate-ir. net/External. File? item=UGFyZW50SUQ9NDI0NDcyfENoaWxkSUQ9NDM5MjU1fFR5cGU9MQ==&t=1. Best Buy. com (2011). Sustainability Report. Retrieved November 25, 2011, from http://sustainability. bby. com/management-approach/sustainable-solutions/.

DesignDamage. com (2009, July). 3 Keys to Improve Your Brand in Social Marketing. Retrieved November 26, 2011, from http://www. designdamage. com/tag/best-buy/. Best Buy. com (2011, July). Privacy Policy. Retrieved November 26, 2011, from https://www-ssl. bestbuy. com/site/olspage. jsp? id=cat12102&type=page&contentId=1218227255732&entryURLID=pcat17011&entryURLType=page&h=488. MPRNEWS (2011, April). Best Buy, US Bank Among Companies Warning of Security Breach. Retrieved November 26, 2011, from http://minnesota. publicradio. org/display/web/2011/04/04/data-breach-best-buy-epsilon/.