Assignment: Legal Advice - Essay Example

According to a number of reports, the company’s subsidiaries have collectively more than $87.7 billion in deposits and also more than $142 billion in different managed loans (CapitalOne, 2011). The company is also a Fortune 500 company, and it trades in the New York Stock Exchange as ‘COF’. The company is also in the S& P 100 index. The Company has a number of strategies already in place and others lined up. One of the initiatives is the June 2011 bid by the organization to acquire America’s credit card operations of the HSBC (CapitalOne, 2011).

This deal will lead to US $30 billion credit card base to Capital One (CapitalOne, 2011). This deal will make the organization one of the largest credit card givers in America. The other strategy that has been in place is to reduce the company’s operation costs and also improve the organizations competitive cost position. The initiative has actions that were already underway by the second quarter of 2007 in the organizations Mortgage Banking, US card, and also UK businesses, together with the costs faced in the purchase of the North Fork Bank (CapitalOne, 2011).

A number of the planned strategies leverage the ability of the completed infrastructural projects in a number of the organization’s businesses. . The initiative will help reduce the company’s operating expenses structure by millions of dollars in pre tax. During the course of this cost restructuring strategy, the company expects to record one time charges of $300 million pre tax. Half of these charges, according to reports by the company, are in concurrence to the severance benefits, while the remaining half, and are in relations with items such as consolidation of the firm’s facilities and infrastructures, and also contract and lease terminations.

These initiatives will help the firm obtain success in the cost reductions ambition. The firm expects its operating costs to fall by about $200 in the coming years (CapitalOne, 2011). The strategy will focus majorly on the structural changes and also reengineering process to help improve efficiencies in operations, encourage innovation, streamline processes, and improve future growth in revenue (Schroeder, 2012). Actions designed to be undertaken include; consolidating all overlapping activities across staff units and line, operations and platforms across the same products, reducing management layers, others include; streamlining middle office, back office, and corporate functions, managing aggressively supplier spending and also continuing the rationalization of spending in technology.

According to a survey conducted these costs reducing strategy expects to reduce close to 2000 jobs all through the company. Already, half of these jobs have already been eliminated, and the affected workers informed (Schroeder, 2012). The firm also hopes to achieve more savings from the elimination of the positions that are currently vacant. It also hopes to gain