ISM 158Slide 2OpportunitiesRisksSlide 5Slide 6QuestionsCase Overview: Charles SchwabOutline for discussionCompany HistorySlide 11Slide 12Slide 13Time of caseSlide 15Slide 16Slide 17Examining the NumbersISMA MEETING TODAY!Questions, Survey, BreakStudent PresentationBetween case and nowSlide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 29Slide 30Slide 31Slide 32Slide 33More RecentlyStock Price HistoryISM 158•Lecture 3•Charles Schwab CaseFig 1.7 Strategic Alignment ModelIdeally, all four quadrants align to create valueOpportunities•Can IT change basis for competition?•Can IT change balance of power among buyers and supplyers?•Can IT build or reduce barriers to entry?•Can IT increase or decrease switching costs?•Can IT add value to existing products and services or create new ones?Risks•Can emerging technologies disrupt current business models?•Are we too early or too late to exploit IT opportunity?•Does IT lower entry barriers?•Does IT trigger regulatory action?Fig 1.8 Analyzing Disruptive TechnologiesFig 1.9 Analyzing Cash Flow CurveQuestionsCase Overview: Charles Schwab•Decision making under rapidly changing environment•Technology providing large opportunities and risks•Regulatory environment changing at same timeOutline for discussion•Background/history of company•Main issues at time of case•Any updates since case?Company History•Discount Broker 1975 – 1994•Multi-channel online broker 1995-1999•Strategic Transition 2000-2002–What are the differences?–What were strengths and weaknesses in each period?Financial Services 1980’sCharles Schwab Discount BrokerCase: Charles SchwabTime of caseCharles SchwabCharles SchwabUS Trust AcquisitionExamining the Numbers•Calculating–Return on Assets–Return on Equity–Profit MarginsISMA MEETING TODAY!•Engineering 2, Room 399, 6-7pm•Right next to the elevators•Open to everyone! Even if you’re new to ISMA. •Please turn in member apps if you have oneQuestions, Survey, BreakStudent Presentation•Johan StenbergBetween case and nowFinancial Services Market TodaySchwab Private ClientUS Trust – State StreetExtending to other Financial ProductsSchwab Equity RatingsResearch OfferingsSchwab Capital Markets2004 follow upSchwab Personal ChoiceStill struggledCharles SchwabMore Recently•Very strong 2006•Recent sale of US Trust AnnouncedStock Price
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