Cash Connection Essay

Words: 1721
Pages: 7
Open Document
Cash Connection

Payday Loans
Strategy, Ethics and Forces

1. What is Cash Connections strategy? * Differentiate itself from competitors to gain the largest piece of the $40 billion dollars of paid lending that the United States industry has to offer, while adhering to government restrictions and meeting customer’s needs.
Reference: Thompson, Peteraf, Gamble, and Strickland. P. (2010). Crafting and Executing Strategy: The Quest For Competitive Advantage Concepts and Cases (18th ed.). Page, C-114.

Which of the five generic strategies discussed in Chapter 5 most closely fits the competitive approach that Cash Connections is taking? * I choose a broad differentiation strategy as a best fit. Allen Franks seeks to produce …show more content…
Consumers used to be limited to options like payday loans or other existing credits. But since now banks are offering new similar products at lower interest rates (Wells Fargo`s check advance products) to consumers, it looks like substitutes are EXTREMELY HIGH and that payday loan companies will need to change their strategies in order to be able to compete.

Reference: http://blogs.wsj.com/economics/2010/09/14/report-blames-big-banks-for-payday-loan-growth/ (click link to a new study)

Reference: http://www.thewester.com/2011/03/ * Reference: https://www.wellsfargo.com/help/faqs/dda_faqs

Credit Card Statistics:
It is estimated that, on average, 20% of Americans have "maxed out" their credit cards.
About 25% of adults in the United States have a history of credit problems.
Americans' average credit card debt is approaching $10,000 per household.
Over 8 BILLION pre-approved credit card offers were mailed to American Consumers last year.

Approximately 65% of consumers carry a balance on one or more credit cards. 23% have maxed out one or more cards. 40% have missed at least one payment in the last 3 months. Fully 33% can no longer make the minimum payments required on their credit cards.
Total unsecured debt for consumers now approaches ONE TRILLION dollars in the United States as of the end of 2007.
The most recent Federal Reserve study showed that 43% of U.S. families spent more than
Show More

Related Documents: Cash Connection Essay

FDIC-Insured Deposit Sweep Program Offered in Connection with Fidelity Cash Management Account Essay examples

Fidelity® Cash Management Account FDIC-Insured Deposit Sweep Program Disclosure Summary This document provides important information about the FDIC-Insured Deposit Sweep Program offered in connection with the Fidelity® Cash Management Account (the “Account”). If you have questions or need additional information, you can call a Fidelity Representative at 800-544-6666. How It Works Your Fidelity® Cash Management Account utilizes a core account through which all transactions settle. Uninvested balances…

Words 9105 - Pages 37

Business Strategy Week 8 Assingment Essay

Introduction: Allen Franks is the CEO of Cash Connection. While in college getting a degree in business administration, Franks purchased and remodeled rental homes. He continued with his real estate business until 1986 when he opened a check-cashing store. Because this was the first of its kind in his home town of Shreveport, it did quite well. After opening a few more stores, Franks realized that his initial store was doing better than the new stores and quickly changed his business model to only…

Words 1156 - Pages 5

CsnodgrassFIN515 W7 Problem Set Essay

Answer the following questions: a. What is the difference between a firm’s cash cycle and its operating cycle? An operating cycle is the average time period between the acquisition of inventory and the receipt of cash from the inventory's sale. A short operating cycle means a more prompt return on investment for the firm's inventory. The cash conversion cycle is the number of days required for a company to convert resources to cash flows. This measure calculates the time period during which each input…

Words 743 - Pages 3

Valuation of Air Thread Connections Essay examples

Air Thread Connections but we need to calculate WACC for the valuation in APV. By assuming the Airthread obtaining fully in equity financing, we can calculate the WACC in order to discounted the intermediate free cash flow from year 2008 to year 2012. The total present value of Unlevered Cash Flows from 2008 to 2012 is $1255.3MM, excludes terminal value. The next steps is using the WACC to discount all the perpetual future cash flows and the terminal value of the perpetual future cash flows is $1540…

Words 962 - Pages 4

Airthread Case Essay

in technology, and shifts in competitive dynamics began transforming the cable industry. Companies within the industry were forced to adapt by acquiring economies of scale and scope. American Cable Communication was seeking to acquire AirThread Connections for three reasons. The two companies could help each other become more competitive in an industry that is moving toward bundled package service offerings. The acquisition would help both companies expand into the business market, and lastly American…

Words 1232 - Pages 5

Essay on Air Thread

A. How should the Cash Flows be valued for 2008-2012? The calculation of each cash flow required us to use the projections from AirThread Connections that are given in the Exhibit 1 of the case allowing us to know the Total Revenue, EBITDA, EBIT and the Unlevered Net Income to be able to compute the Unleveraged Cash Flow (UFCF) from 2008-2012. As well we used Depreciation & Amortization, Capital Expenditures and the assumptions established in AirThread Connections Exhibit 1 case to make the adjustments…

Words 1867 - Pages 8

Essay on Kpmg Accounting for Lease Extension

derived from the leased property, in which case that basis shall be used. Therefore, Jack should compute the total amount of rental cash outflows called for during the lease term of ” the new agreement and divide that amount by the 120 months in the lease term to determine the monthly rental expense to be recorded on a straight-line basis. KPMG University Connection www.KPMGUniversityConnection.com © 2013 KPMG LLP a Delaware limited liability partnership and the U.S. member firm of the KPMG network…

Words 1860 - Pages 8

Valuation of Airthread Connections Essay

competitive dynamics. In order to gain competitive advantage in the long run, ACC needs to become an aggressive acquirer. Air Thread Connections (ATC) is one of the options available to be acquired because of ATC owns greater technical resources in wireless service, and it is one of…

Words 1075 - Pages 5

Qualitative Research Proposal

Cash, T. F., Theriault, J., & Annis, N. M. (2004). Body image in an interpersonal context: Adult attachment, fear of intimacy and social anxiety. Journal of Social and Clinical Psychology, 23(1), 89-103. This article by Cash and colleagues captures most of the variables being looked at in the current proposal project, making it particularly relevant to the proposal topic. The authors looked at the construct of body image and how it is related to and affected by anxiety and attachment/intimacy. They…

Words 1310 - Pages 6

Compare And Contrast Of Macroeconomic Indicators

quality of life. life expectancy, less income inequality, and more mobile and internet connections. This overwhelming body of data earns the United Kingdom the top position in this ranking of quality of life. Taking these emerging trends into account, a rough ranking in terms of quality of life becomes evident. Rwanda takes the last position, as it has far fewer physicians, mobile phones, and internet connections than the other nations, as well as having the lowest literacy rate and by far the highest…

Words 1274 - Pages 6