Mellon Strategic Analysis Essay

922 Words Nov 13th, 2012 4 Pages
Strategic Mangement
CASE: Mellon
1) The most important general environmental factors for Mellon are;
a. Economics: Mellon specializes in managing company’s finance, there for it is very important for the economy to prosper in order for Mellon to retain clients and perform their specialization.
b. Political/Legal: Since Mellon operates out of the U.S and Canada, it is very important that laws and regulations are exercised to avoid conflict. There is a great deal of regulations associated with the finance and banking industry.
c. Global Segments: It is very important that the Canadian market performs well because Mellon has a joint venture with CIBC who operates out of Canada.
2) The most important of the five industry forces
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They are unable to control where the industry is leading; it could slow now new acquisitions and expansion into other global segments. They are Valuable because they are able to neutralize their threats by acquisitions, they are Rare because they are offer both financial and banking services, they are not easy to imitate nor substitutable due to their excellence in servicing and market control.

8) Business level – Focus Strategy, Corporate Level – Moderate Level of Diversification w/ related constraints, International Level – Transnational Strategy.
The above analogy fits because they operate both in the U.S and Canada, they utilize both the companies specialization to services their customers. The company offers a diversified selection of services, using all their resources together to provide their services.
9) The firm’s problem is the downturn of the economics, they fear of not being able to control the outcome of it and that it may affect the joint venture relationship. They face many risk such as credit risk, operational risk, and market risk. Their main concern is the peace of mind of current customers and the ability to gain new customers under the circumstances. In this situation, they do not much control. The main focus should be to maintain the current customers. I believe they would take up to more risk by obtaining new accounts. They should try and balance the risk between the U.S economic and CAN. During this time, I believe they should even

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