Capital One Organizational Structure Essay

CFO’s must be wise about their investments. They must have a strategic plan called capital budgeting. When considering global capital budgeting, investments must be identified, analyzed selected and implemented with the intentions of having returns to cross over more than one year. Some of them make investments because they are not seeing beyond what they want and are not thinking about what risks can take

One key responsibility of working as a manager is to recognize the best way to organize and run an organization. A manager who can work with and put into motion the structure and plans of a company is very important to the life of the organization. Chief Executive Officer of Chick-fil-A Dan T. Cathy is an example of such a manager and business owner. Chick-fil-A began its journey in 1960 in Hapeville, Ga. Since then the second

Capital is the source of fiancé through which resources are provided. It may be debt financing

Capital Fund Law Group is a Salt Lake City based investment law firm that serves hedge funds, real estate funds, and other businesses that utilize securities in New York City, San Francisco, and Los Angeles. One of the primary reasons people hire investment management attorneys from Capital Fund Law Group is to streamline the federal regulation process using legal exemptions.

Capital One is a financial services company based in Mclean, VA. The company operates primarily as a banking network with over one thousand branches throughout the United States. Its more than 30,000 employees also serve customers in Canada and the United Kingdom, as they are one of the largest issuers Visa and MasterCard credit cards, auto financing, home loans, and online and direct banking through subsidiary ING Direct ("Capital One," 2012). Since its inception in 1993, this company has grown into one of the largest financial institutions in the world, providing commercial and consumer loans, as well as treasury management and depository services. Capital One has over $15 billion in revenue and a market cap of over $35 billion ("Key Statistics," 2012). That is enough revenue to qualify it as the 148th largest company according to Fortune's listing of the top 500 companies in 2012 ("Capital One," 2012).

For the threat of new entrants, the financial market in United States is fiercely competitive. The threat of new entrants is not serious for some companies that have been famous for a long time. Capita One continued to seek technological innovation and adopt the diversification strategy, they stick to running business including credit cards, auto loans, family loans, savings, personal credit, insurance and so on. According to the data on MBAlib website, by the end of 2017, the credit card loan balance of Capital One was 97 billion 100 million dollars, which is the third place in the U.S credit card market. The companies in the first and second is 141 billion 800 million of Morgan and 133 billion 300 million of Citigroup. The revenue of credit card accounts for 62.8% of the total revenue.

The mixture of debt-equity mix is important so as to maximize the stock price of the Costco. However, it will be significant to consider the Weighted Average Cost of Capital (WACC) as well so that it can evaluate the company targeted capital structure. Cost of capital (OC) may be used by the companies as for long term decision making, so industries that faced to take the important of Cost of capital seriously may not make the right choice by choosing the right project(Gitman’s, ).

Information gathered from Costco’s balance sheet show that it has steadily grew a larger cash reserve. It has a higher rate of outstanding receivables and has sharply increased the rate of inventory kept in stock from 16% in 1997 to 27% in 2001. Another interesting fact to notice is the high increase in property, plants, and equipment increase in proportion to assets, from 31% in 1997 to 58% in 2001. Costco has a much higher ratio of accounts payable in 2001 compared to 1997, which can be explained by the many investments and purchases of property, land, and plans. The amount of short-term liabilities to assets has more than doubled, from 20% to 41%. This may be a troublesome trend if it continues since they

4 Today, Tier 1 capital includes common stock, retained earnings and non-cumulative, non-redeemable preferred stock. In addition to banks, other financial institutions issue significant amounts of preferred stocks. For example, in 2007 Freddie Mac and Fannie Mae raised

Before the nineties the Coca-Cola company was having a centralize system of control, but after sometime they realized that if they had to meet the demands of the customers they should adopt a decentralized system in which the authority of decision making is distributed between different managers so that every sector can be managed effectively. This system was implemented in the nineties by the company’s board of directors. Now the organization is having two groups who are responsible for operating:

Citigroup is one of the largest companies in the world. Citigroup provides a wider range of financial services from insurance to financial advisory service. According to Forbes, Citigroup is the

The below listed topics are ranked and compared accordingly to the argument of innovation and global need. The given reasons generate reasonable understanding of the trends and their importance in enterprise systems:

How an organization is structured is becoming more and more important in today’s business world. The structure of the organization is one of the important factors that determine employees’ efficiency in performing their tasks. This paper will concentrate on how organizational structure affects the efficiency of work done by employees’. Six key elements of an organizational structure will be followed by three common organizational structures. Efficiency of employees will be brought about relating to the above mentioned.

A corporate structure enables a company to maintain the separation between its owners and its management through the implementation of corporate governance. Corporate governance provides companies with monitoring changes in corporate hierarchy as well as ensuring the protection of shareholder interests. Most corporations break down its hierarchy into two tiers. The first tier is made up by shareholder elected officials called the Board of Directors. The board of directors is further broken down into three distinct categories: the chairman, the inside directors, and the outside directors. The Chairman is chosen by the Board of Directors and acts a liaison between the company and the shareholders. Inside directors can either be members of higher-level management or corporate shareholders. Also known as executive directors, inside directors oversee internal corporate affairs. Outside directors are external parties that provide unbiased viewpoints to corporate decision making. The second tier includes the executives who provide the corporation with executive, financial, and operational support. Popular examples include: the Chief Executive Officer, the Chief Financial Officer, and the Chief Operations Officer. Both tiers correlate efforts to ensure that shareholder interest is maximized (The Basics of Corporate Structure 2015).

Capital markets are financial markets for the buying and selling of long-term debt or equity backed securities. When they work well these