Investment Bank Analysis - Research Paper Example

Investment Bank External Environment Analysis (a) Competition In the year 2009 approximately 69 were graduated from Vancouver businessschool. The number was increased in the year 2010. It is reported that 145 students were graduated and in the year 2011 approximately 190 students were graduated from Vancouver business school. The job prospective in Vancouver is not at all impressive. Total 12, 530 people are working as business professional in Vancouver. 33% of total business graduated employees in Vancouver have managed career related employment. Major of the business graduates in Vancouver are getting employment either in government sector or in public limited firms. As per the interest in equity research analysis; the average salary for equity research associate in Vancouver is $75,000 per annum. (b)Regulation The main advantage of being a part of a union is a student can be represented locally and nationally. Many students who stay away from home for the purpose of higher studies, the member of union can help them in every major and minor incident. Moreover being a part of union a student can achieve social affiliation by the other members. Last but not the least the union can actually help the graduates to place the members in various companies. Salary information of other employees should not be disclose to the prospective employees who has newly appointed in organizations as it is the personal matter of individuals and confidential matter of organization. Job protection legislation is required to exist in the firm in the competitive business market. The professional association may look after the basic employment needs according to the business priorities. They have to look after the promotions of employees according to the performance. Moreover the employees should be informed of the job roles and performance expectations. These monitoring activities will protect the employment right in organizations. (c) Economy In 2011, BC’s real GDP got a growth of 2.9% which expand by 3.2% than previous year. The economical growth has recovered positively after the global financial recession of 2008. BC got the success in the areas like international trade, export and import. Most importantly they achieved growth in service sector. The employment rate has increased by 0.75% after the recovery of recession. The global industries are motivated enough to invest in BC due to rapid economic recovery. At the present time the government sector and service providing private sectors are hiring most of the business graduates. (d) Social The skills required by the employees are good analytical skills of primary and secondary data, knowledge about subject, keep updating with the current affairs. Most importantly passion about the job and patience for success will be the key strategy for the employees to get success. Any social media website that has the enormous database and journals regarding financial and marketing research will help the employees. As an example Yahoo finance for equity research analysis and Marketline for the marketing analysis is necessary. (e) Technology Business graduates need to do short-term courses like Java, Sas etc in order to do better analytical work. It will increase the core competency of students. The business graduates need to do mid-term courses like CFA, FRM in order to develop the basic skills of prospective employees. These mid-term courses will make the employees so efficient that they can achieve great success in financial equity research sector. 2. SWOT Analysis Strengths (a) Capable employees The key strength of any organization is the employees. The jobs in an investment bank need to done by the professionals as these requires in-depth analysis and efficient workforce (Padmalatha, 2011, p.76). (b) Variety of financial services Various types of financial services like trading, venture capital, private equity, Merger and Acquisition, project finance, joint venture are being provided by the investment banks. (c) Advanced technology The working has been done efficiently in the investment banks due to the technical advancement. It makes the job easier for the employees of banks. (d) Infrastructure advancement In the present era of globalization the developed and the developing countries are outfitted with the advance and latest amenities like better transportation, telecommunication, internet and good available lands which influence the investment banks to operate. Weaknesses (a) Huge dependency on Trading Sectors According to the available data and analysis which is done by the team and the experience shared by the senior executives and managers, this is quite clear that the investors are investing more in the trading sectors. They are not motivated enough to invest in other fields due to lack of awareness about various services. (b) Investor’s lack of knowledge Unawareness about the various services of investment banks among the investors is the major weakness of investment banks. Therefore after long year of operation the investment banks did not reach up to the level. Opportunities (a) Increasing demand of investment banking The knowledge about various services of investment banking is gradually increasing among the investors. Moreover, according to the numbers of Merger and Acquisition and looking at the Sensex of the countries it can be seen the investors are diversifying their investment in other services to rather than only investing in trading sectors. (b) Removal of international trade barrier International trade policy has been reformed in 1991. Due to the reformation of international trade, the areas and scope of investment banking has been widened in various countries. (c) Effective financial performance The investment banks around the globe has done tremendous job which reflects in their financial performances. Countries like India, China and Brazil who not only survived in the recent era of global recession but has performed effectively to show the path to other developed countries in order to overcome this critical situation. Threats (a) Decentralized Management Each and every branch managers of an investment bank is tending to give the authorities for decision making in the respective branches. The decisions which are made by the branch managers are diverse. Moreover any wrong decision may result a huge loss to the respective company. This is the biggest threat of the decentralized management. (b) Competitive market Day by day the investment banks are facing huge competitions. Due to the few legal entry barriers new players are entering in the potential market. Therefore the existing investment banks are losing their market shares and are struggling to make profit. References Padmalatha, S., 2011. Management of Banking and Financial Services. New Delhi: Pearson Education India. Read More