Matthew W Ford
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Matthew W Ford
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Practice with Industry Analysis 1 (Updated 06/13/2011 03:20 PM)MGT 490 Study of the full service US financial broker/dealer industry reveals the following info: 10 firms with a national footprint; CR4 is about 40%; commission prices falling steadily over the past 10 years; hardware assets consist of computer networks; large software asset of proprietary information databases; talent is sourced from top domestic and global business schools with many hires possessing advanced degrees; significant turnover among financial advisors—FA’s commonly switch firms when offered more money; growth of ‘discount’ brokers that offer low commissions and investment choices via online channels; firms have privileged access to funds offered by the Federal Reserve; clients are middle to upper level income and net worth individuals who lack understanding of how financial markets and brokers work; all broker dealers must be licensed by the National Association of Securities Dealers and subject to oversight by the Securities & Exchange Commission. Use a Five Forces framework to categorize this info & to assess potential for sustained industry profits. (Use a + 0 – rating approach similar to our class example to facilitate your analysis)
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