...Jessica Turner has a master's degree in accounting and an undergrad degree in business. She established Turner Test Prep, a CPA exam review center, after being rejected by the Big Six accounting firms. She decided to bring the company into existence when she was searching for other employment options, and also because she had experience in the field when she worked at a review center's business office before taking up her master's degree. There, she inadvertently started teaching the math portion of the reviews, and received training in teaching. After passing the CPA exam on the first try herself, she decided that she would like to help those who want to take the CPA exam pass on their first try as well. And so she developed a business and marketing plan, convened with various professors to create a comprehensive curriculum, and opened her firm's doors. Instead of the normal review route of using books, software, or online courses, she provided a full service 6 week, 3-6 hours a day review regimen for her clients that include one hour live lectures from various professors, discussions about test taking skills and organizational skills to digest information faster, provided audiotapes that the clients can listen to at home or in their cars, executed timed mini tests as well as practice essay questions, one on one bi weekly client meeting to see how they've progressed and for them to ask questions, and a direct line to her via e mail for any queries the clients may have. She Even...
Words: 487 - Pages: 2
...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 the investment to find the beta of this short time period. Therefore, we chose a similar company called Charles Schwab, which has very similar sources of revenue, discount brokerage services. However, this company has a very different capital structure, so we unleveraged the beta in order to get the best, most accurate beta for Ameritrade. We assumed that the capital structure of Ameritrade did not have debt, and that the project would be financed with equity only. We found a levered beta for Charles Schwab of 2.15. After unlevering it, we got a beta of 1.8768. When using the CAPM model, we concluded that the cost of capital of Ameritrade is equal to 20.40%. Factors to be considered in evaluating the project Various factors must be considered by the management of Ameritrade when evaluating the proposed strategies. It is necessary to determine the cost of capital that should be employed for Ameritrade. An appropriate discount rate is required to derive the net present value (NPV) of the investment. NPV is the preferred decision criterion...
Words: 3085 - Pages: 13
...CASE STUDY– Trilogy Software Few industries have undergone as much turbulence in the past few years as those in Internet-related businesses. One of the leaders in this industry is Trilogy Software, based in Austin, Texas. Trilogy, founded in 1989, creates software to help e-businesses handle procurement, customer service, relationship management, and data integration. Its 1500 employees serve an impressive client base that includes Ford, FedEx, Land’s End, Charles Schwab, and Motorola. Trilogy’s president and CEO, Joe Liemandt, seeks to hire and keep employees who can flourish in a chaotic environment, who are willing to take risks, and are not afraid of working long hours. Liemandt has fashioned a strategy for Trilogy that encompasses maintaining the high energy of a start-up with the experience of an established company. An important part of that strategy is continually recruiting “only the best”—bright, dynamic individuals from the best universities, business schools, and industries. By hiring great people and giving them significant responsibilities from day one, Liemandt hopes his firm will be able to respond to competitive challenges, keep its entrepreneurial spirit alive, and achieve its goal of being a high-impact company. New recruits are wooed to Austin with dinners, cultural and recreational outings, and competitive salaries. Once there, the recruits go through “boot camp”—an intensive training program conducted to turn rookies into Trilogians. In classes led...
Words: 561 - Pages: 3
...effective was Ko in defining and framing a vision for Motorola Penang? In what ways were her efforts similar to and different from the example of Charles Schwab citied earlier? How did Ko resolve the dilemma of where visions come from? Where did she find her vision? S. K. Ko had a very aggressive and challenging vision for Motorola Penang. She struggled with the most effective way of making that vision a reality. Ideal vision is something that inspires and directs people. There is always a tension for a leader when it comes to giving and receiving a vision. She engaged many of her top team in discussions about the challenges of the future of the facility. She had many specific and concrete ideas but didn’t want to seem to be imposing them on the group. She wanted to get most involvement possible to ensure all relevant information was considered that would be tasked with making the vision a reality. Ko’s philosophy reflects a positive, familial, celebrate every accomplishment kind of work environment. She saw technology as a two sided coin that would eliminate low skill job at the same time that it brought new opportunities. She was committed to rapidly moving Motorola Penang to produce more complex systems products, creating an increased demand for technicians and engineers and potentially less demand for unskilled operators. Besides Charles Schawb anticipated a need in the middle class. His vision led him the unique path. It took his organization to places other organizations could...
Words: 538 - Pages: 3
...Few industries have undergone as much turbulence in the past few years as those internetrelated businesses. One of the leaders in this industry is Trilogy Software, based in Austin, Texas. Trilogy, founded in 1989, creates software to help e-businesses handle procurement, customer service, relationship management, and data integration. Its 1500 employees serve an impressive client base that includes Ford, FedEx, Land's End, Charles Schwab, and Motorola. Trilogy's president and CEO, Joe Liemandt, seeks to hire and keep employees who can flourish in a chaotic environment, who are willing to take risks, and aren't afraid of working long hours. Liemandt has fashioned a strategy for Trilogy that encompasses maintaining the high energy of a start-up with the experience of an established company. An important part of that strategy is continually recruiting "only the best'-bright, dynamic individuals from the best universities, business schools, and industries. By hiring great people and giving them signigicant responsibilities from day one, Liemandt hopes his firm will be able to respond to competitive challenges, keep its entrepreneurial spirit alive, and achieve its goal of being a high-impact company. New recruits are wooed to Austin with dinners, cultural and recreational outings, and competitive salaries. Once there, the recruits go through "boot camp-an intensive training program conducted to turn rookies into Trilogians. In classes led by Liemandt and other Trilogy veterans...
Words: 498 - Pages: 2
...continuation of benefits. Further information about your COBRA rights will be sent to you. The effect on your other benefits is explained in the chart attached to this letter. If you have vested stock options as of the date of your termination, access your Charles Schwab account or contact Charles Schwab per the contact information below to exercise vested options. If you have questions about your benefits or stock, please contact the appropriate entity listed below. Plans administered through: Aetna Healthcare 888-220-1017 https://member.aetna.com/Member_Public/ Definity Healthcare 866-333-4648 www.definityhealth.com Vision Service Plan (VSP) 800-877-7195 www.vsp.com WageWorks – Flexible Spending Accounts 877-924-3967 www.wageworks.com Delta Dental/WA Dental Service 800-238-3107 https://www.deltadentalwa.com Conexis – COBRA 877-722-2667 www.conexis.org Magellan – Employee Assistance Program 800-523-5668 http://www.magellanassist.com/ Minnesota Life 800-843-8358 Putnam Investments – 529 Plan 800-685-6542 www.ibenefitcenter.com The Vanguard Group – 401(k) Plan 800-523-1188 www.vanguard.com The Hartford – Disability 800-303-9744 Charles Schwab 800-654-2593 http://eac.schwab.com It is XXX policy to pay an employee for the balance of accrued but unused vacation at the time of termination. This payment ordinarily will be included in the employee's final paycheck. XXX does not pay out for personal...
Words: 373 - Pages: 2
...ქეისი N4 Charles Schwab – the switchboard business design ამ ქეისში განხილულია ამერიკელი მილიარდელი ბიზნესმენის მიერ დანერგილი ბიზნეს მოდელი და მისი რევოლუციური მოღვაწეობა ამერიკის ფინანსურ ბაზარზე. შეიძლება ვთქვათ, რომ მისმა ბიზნეს მოდელმა განვითარების სამ საფეხურიანი გზა გაიარა: თავიდან ჩამოყალიბდა discount brokerage კომპანიად, შემდგომ იყო financial planner-ებთან თანამშრომლობით მიღებული დიზაინი და საბოლოოდ მიიღო გამანაწილებელი დაფის (switchboard) ბიზნეს მოდელის ფორმა. ამ ბიზნეს მოდელის დანახვასა და განხორციელებაში ჩემი აზრით მნიშვნელოვანი როლი ითამაშა 2-მა ძირითადმა ფაქტორმა, თავად შვაბის პიროვნებამ და ფინანსურ ბაზარზე არსებულმა მდგომარეობამ, რომელმაც ხელი შუეწყო მის განვითარებას. შვაბის პიროვნებამ იმიტომ, რომ ამ ადამაინს ბავშვობიდანვე ჰქონდა მიდრეკილება შემოსავლის მიღების და ფულის კეთების. როგორც ცნობილია ჯერ კიდევ სკოლის პერიოდში თავს ირჩენდა ბაზარში კაკლის (ნიგვზის) გაყიდვით, კარდაკარ კვერცხებითა და ქათმებით ვაჭრობით. რაც შეეხება ფინანსურ ბაზარზე არსებულ სიტუაციას ის შემდეგნაირი იყო: არსებობდა რამდენიმე საბროკერო კომპანია და არსებობდნენ ადამიანები, რომელთაც სურდათ ფულის დაბანდება. საინვესტიციო პორტფელების შესაქმნელად საჭირო იყო ინფორმაციის მოძიება და გაანალიზება, ამისთვის ინვესტორები ქირაობდნენ ბროკერებს, ეს უკანასკნელნი კი აძლევდნენ მათ რჩევებს, რაშიც იღებდნენ თანხას. ერთი შეხედვით ყველაფერი ნორმალურადაა, მაგრამ ბაზარზე არსებობს მხოლოდ ერთი სახის შეთავაზება, რომელსაც აქვს პაკეტის სახე. ამ მომსახურებიდან კლიენტს რეალურად შეიძლება არ სჭირდებოდეს მთელი პაკეტი, მაგრამ უწევს...
Words: 1208 - Pages: 5
...effective was Ko in defining and framing a vision for Motorola Penang? In what ways were her efforts similar to and different from the example of Charles Schwab citied earlier? How did Ko resolve the dilemma of where visions come from? Where did she find her vision? S. K. Ko had a very aggressive and challenging vision for Motorola Penang. She struggled with the most effective way of making that vision a reality. Ideal vision is something that inspires and directs people. There is always a tension for a leader when it comes to giving and receiving a vision. She engaged many of her top team in discussions about the challenges of the future of the facility. She had many specific and concrete ideas but didn’t want to seem to be imposing them on the group. She wanted to get most involvement possible to ensure all relevant information was considered that would be tasked with making the vision a reality. Ko’s philosophy reflects a positive, familial, celebrate every accomplishment kind of work environment. She saw technology as a two sided coin that would eliminate low skill job at the same time that it brought new opportunities. She was committed to rapidly moving Motorola Penang to produce more complex systems products, creating an increased demand for technicians and engineers and potentially less demand for unskilled operators. Besides Charles Schawb anticipated a need in the middle class. His vision led him the unique path. It took his organization to places other organizations could...
Words: 326 - Pages: 2
...1. Charles Schwab revolutionized the brokerage industry in 1975 by allowing individual investors to manager their assets and making transactions free from high costs. 2. In 1996, company launched online trading platform and cut the equity trading price to an industry low of 29.95 per trade. It soon became King of online brokers with 2.2million customer base. 3. By late 90’s, deregulation generated intense price competition. Company brand was caught in threats from full service brokerage firms and deep discount Internet brokers. 4. Adding to that there are technology advancements during 90s that enabled customers to invest securities online, while becoming independent of brokers. In response to this company offered broad range of financial services. 5. By 2004, revenues are flat and net income declined by 39% in just 12 months. 6. Company was not providing good value to the clients. The company’s relative price had increased and it is no longer considered as low cost service provider. 7. Due to profitability pressure they trimmed the marketing budget, but they kind of soon realized with their new marketing director that they needed fresh marketing plan to revitalize their brand. 8. So they started TTC campaign in test markets in 2005 Q4. In the end of Q4 when they compared the results with control markets the lift in the test markets are positive. Planning for 2006: Marketing director had a marketing plan that budgeted around 200 million dollar for...
Words: 387 - Pages: 2
...Charles Schwab: Growth for the Future Marcus Readus & Brea R. Silva Team D Boston University; MET AD 741 October 14, 2013 Abstract This paper will discuss what direction the leading investment Services firm, Charles Schwab Corporation should take over the next ten years. To answer this question, an analysis of where Schwab and the financial industry are right now. In addition, it will examine what social and technological trends are shaping the way financial industry might be heading in the future. Lastly, it will recommend the direction the Schwab organization should take over the next 10 years. Introduction The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.9 million active brokerage accounts, 1.6 million corporate retirement plan participants, 895,000 banking accounts, and $2.11 trillion in client assets as of April 30, 2013 (Krieger, 2013). Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions;...
Words: 2626 - Pages: 11
...lnc reffi CmenLES Scmwats IN 2008 € r*sa*s:E-3{:Y?*N at the time' was 32 ln l97l , Charles Schwab' who concetn' Firsr com,J,;; ;i';;,, ,iott' brokerage the name to Charles mander. Larer he *oufilhunle t" i975' Schwab & Company, t'-"' *httt.the Securi- tiesandExchangeCommission(SEC)abo'lishedmanstock,uades', datorv fixed commt"it"t t" :t^ll:: brokerage.busrness' ;;;;e t"piarv into the discount as 60"/" below those *"h offering rates that *ttt u' brokers' Over the next offered by full commission of 204'000 trades a dar slumped from an averase a day in 2002 In 200:' in 2000 to 112,000 "'it' tc s+': billion' net .income .fell oi ;;;'"j.[-it high price ttllTgT^" boii '"i[a", and the stock a low of $6'30 in earl' ((r70 a share in l9;;-; *a' Fl,i:h*ab. the kev strategic question and tevtta\tze growth' how to reverse tf" i"tft"t' goal of 20"h ,a'1u,tolt"t" ,"ri"1fr. company's greater tnatt LL /o' growth and a profit margin ;ilr. 25 years, ,t growth' .o-pu'-'y"e"perienced t'19:?. " focus' sawy investments fueled by a customer-centtic (tt)''"'d .a. number of a bold move into oroduct inno'ations'-inliuding tnline trading in 1996' reSlrded as one By 2000, the company wa;1idelv of the era' Revenues had of the great success i''it' net income to $803 milsrown to $7'l billlon nnJ respeci^;",,;;.;; $i.t t ltlio, and $124 million' account to ;';.ir:i, i;;3' o"li"e tradins had grown "t'dtil.ttough ilT;".';;;"i"r'"'i"g' Ye-ae $c*uaagsgs I XaqlgcRA*E E N alq-:...
Words: 10065 - Pages: 41
...Charles Schwab in 2008 1. Analyze the competitive structure of the brokerage house industry using Porter’s five forces model. What are the principle drivers of profitability in this industry? How have changing regulations, demographics, and technology impacted competition over the last two decades? Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1) Bargaining Power of Supplier 2) Bargaining Power of Buyers 3) Intensity of existing Rivalry 4) Threat of New Entrants 5) Substitutes 1) Bargaining Power of Supplier In the on-line brokerage firms, we have 3 major categories of suppliers that are * Suppliers for IT infrastructure * Suppliers for the software required to operate these sites and offer functionality to customers * Information services that will offer content to brokerage firm’s website Once the on-line brokerage commits to a company (supplier/s) of the above .these companies that supply this back-end infrastructure can be reasonably certain that the on-line brokerage will commit and remain a customer for some time since future equipment will usually have to be compatible with the existing architecture. The same dependencies can be attributed to the software vendors. Another leading supplier consists of firms that provide financial information to the brokerages such as Aether, Reuters and Associated Press. However, Securities and Exchange...
Words: 3270 - Pages: 14
...Ethics and Business Success Overview Ethics are the principles of right and wrong that are accepted by an individual, a social group, or society as a whole. When it comes to professional ethics, we take into consideration our personal values, family background, culture, education, and religion or philosophy before making important decisions. These factors provide the framework from which we base our decisions and justify our actions. Unfortunately not everything in life is so cut and dry, there often exist many gray areas that can lead to ethical dilemmas, since what one person thinks is the right course of action might not always appeal to everyone else’s ethical sensibilities. For many the words “business” and “ethics” form an oxymoron. We are frequently inundated with reports of ethical misconduct in the business world—misappropriated finances, inflated earnings, labor misconduct, and environmental recklessness are just a few of the many egregious acts to which we have become familiar. In this reading, we will explore the importance of business ethics and closely study how it relates to corporate success. We will take a look at several stellar examples of companies that regularly exhibit high ethical standards. While you read, consider how your personal ethics come into play when you make business and personal decisions that affect others. Codes of Conduct The first step towards implementing ethical business practices is to clarify what types of behaviors a company...
Words: 2750 - Pages: 11
...Unit 3 Research Paper # 1 Business Law Outline Thesis--Government Regulation is needed in the U.S. to keep scandals from ruining our businesses livelihood and the financial futures of all Americans. Introduction Many acts have been created because of controversy and scandals that have and continue to happen in the U.S. These acts were introduced to prevent individuals and businesses from losing everything and to help the government to keep individuals and businesses safe from scams. Without these regulations there would be no standards and companies and corporations could do as they please. They also help to monitor the accounting of companies, keep the scandals at a minimum, and watch for trends so we don’t have another stock market crash. Too many people have lost everything when these types of disasters strike. Securities Acts of 1933 and 1934 The Securities Act of 1933 was enacted as a result of the stock market crash of 1929. It was the first major piece of federal legislation to apply to the sale of securities. The legislation was enacted as the need for more information within and about the securities markets was acknowledged. The 1933 Act was based on the idea that companies offering securities should provide potential investors with sufficient information about both the issuer and the securities to make an informed investment decision. The Securities Act of 1934 established the Securities and Exchange Commission (SEC). The 1934 Act also gives...
Words: 3671 - Pages: 15
...1990s, Johnson & Johnson faced new business pressures when large customers, such as Wal-Mart and K-mart, made new demands on the company, such as cost savings and just-in-time stock replenishment. Johnson & Johnson’s business and IT managers acted in partnership to develop a new set of information technology (IT) infrastructure capabilities which enabled the company to provide the necessary services for its large customers while at the same time reducing costs at Johnson & Johnson [Weill & Broadbent, 1998]. In the late 1990s, Charles Schwab focused on delivering customized information to its investors in a timely manner. Using the company's IT infrastructure and applications aligned with its business focus, Schwab became a full service brokerage firm. The firm was able to provide information and process transactions in meeting its business objectives. Customers could retrieve stock quotes and place orders via Schwab's Web site. As a result, the corporation continues to be an industry leader. These two examples demonstrate that an organization’s IT infrastructure can provide tangible benefits and a continuity of business practices [Kettinger, Grover, Subanish, & Segars, 1994]. A particularly important characteristic of IT infrastructure is flexibility [Byrd & Turner, 2000]. Researchers have stated that IT infrastructure flexibility should be viewed as an organizational core competency and that IT infrastructure flexibility is necessary to handle increased customer demands...
Words: 328 - Pages: 2
