Read the case study E-Trade and answer the questions: Important facts in this case (company, industry, competition,
Question:
Read the case study “E-Trade” and answer the questions:
| Important facts in this case (company, industry, competition, etc)?
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| Environmental & Competitive Scan | |
| External factors outside the direct control of the company, but which affect the company. External factors create opportunities and threats to which the company must respond. (e.g., political, demographic, environmental, political, global, legal)
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| Competitive factors that impact the company (e.g., nature of competition, characteristics of existing competitors, potential new competitors, substitute products, bargaining power of suppliers and customers)
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| What are the critical success factors in this industry? How well does this company address those critical success factors?
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| Internal Scan – what are the company’s internal strengths and weaknesses relative to critical success factors, the competition, and the environment? (Include financial ratios) | |
| Internal strengths
| Internal weaknesses
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| As you consider this company, what do you see as its sustainable competitive advantage(s), (i.e.,what core competencies does this company have that competitors will not be able to imitate/improve upon in the foreseeable future)?
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| What strategic recommendations would you make to this company(i.e., where should they go and how should they get there)?
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| Financial Ratio Analysis (Option: Use Financial Ratios CD for calculations) | Current Year | Previous Year | Change | Industry Averages | Comments on this ratio |
| Liquidity Ratios
Current ratio
Quick ratio
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| Leverage Ratios
Debt-to-Asset ratio
Debt-to-equity ratio
Times interest earned
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| Activity Ratios
Inventory turnover
Avg. collection period
Total asset turnover
Fixed assets turnover
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| Profitability Ratios
Gross profit margin
Oper. profit margin
Net profit margin
Return on assets
Return on equity
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| Revenue/
Sales revenue
Cost of sales
Operating profit
Net Income
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Expert Answer:
Important facts in this case company industry competition etc 2011 ETrades revenues rose to 2008 million and net income rose to 203 million despite a reduction in the number of employees by only 5 fro... View the full answer
