Environmental analysis for Capital One Financial

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COMPANY BACKGROUND - CAPITAL ONE

Capital One Financial Corp ( COF) is a McLean, Fairfax County, Virginia-based bank holding company specializing in credit cards, home loans, auto loans, and savings products. It operates as the holding company and started in 1993. The bank also offers credit card products, as well as small business lending, installment lending, and healthcare financing. The company invests in various securities, including the U.S. Treasury and other U.S. government agency obligations, collateralized mortgage obligations, mortgage backed securities, and asset backed securities. The firm was a pioneer of the mass marketing of credit cards in the early 1990s.

ENVIRONMENTAL ANALYSIS

EXTERNAL ENVIRONMENT

Here we will analyze the effect of various environmental factors and to see what trends are like to affect the industry in which the it is operating in a Brief manner.
Demographics

Capital one has a wide array of customers. They are extremely diversified in the products and services that they offer. They offer loans and credit card services to everyone from low-income, sub-prime customers, to extremely high-wealth individuals and everywhere in between. In general, Capitalone group attempts to target a wide range of demographics and attempts to offer each group competitive packages and services.

• Economic Forces: One has monitor the economic trends like GDP trends, Interest rates, Money supply, Inflation rates, Unemployment levels, Disposable income. Currently in USA there may be saturation. It has to look for the other parts of world there is growth especially in Asian countries. Individual economies becoming interconnected into a global economy.

• Technological Forces: Impact of following factors:

 Efficiency of infrastructure, including roads, ports airports, rolling stock, hospitals, education, healthcare, communication, etc.
 Technical innovation such as Internet Banking, Mobile Banking and other future ecommerce products: Internet, virtual online stores, using Internet effectively to increase the reach and to reduce the cost. Portable Information Devices, Electronic networking, smart mobile robots, increase in the speed of microprocessors will have tremendous impact on business.

• Political Legal regulations: One should also be aware of foreign trade regulations, attitude towards foreign companies as Capital one wants to aspire to be a multinational company. It has to consider following factors:
* Political climate - amount of government activity
* Political stability and risk
* Government debt
* Budget deficit or surplus
* Corporate and personal tax rates
* Payroll taxes and other ...