Case Study Essay Example | Topics and Well Written Essays - 1250 words - 16

Case Study - Essay Example However; the company development has gone unnoticed due to poor marketing strategies. The company has avoided external capital for 15 years and it has also developed a fear of venture capital and this has prevented it to rise in profitability for long. The company recently partnered with which has strengthened TEOCO without changing the culture of our organization. This paper therefore seeks to analyze the business environment and strategies of TEOCO Company analyzing various factors that contribute to its success. Over the years there have been external forces and industry conditions that have contributed to its performance. The external forces that include competition have affected the company’s performance to a greater level. This competitors Vibrant and Broad margin have been at the forefront in the provision of the same products. The competitors had low prices and this gave TEOCO Company really tough time to make profits and this affected the performance. The company conditions also affected the company performance at a greater extent. There has been a partnership agreement with TA Associates. The firm had made a minority equity investment of $60 million in TEOCO.This has boosted the capital base of the TEOCO company which was at the verge of collapsing. This has enabled the company to further increase its profitability. TA Associates which is the largest private equity firms in the country, managing more than $16 billion in capital by 2009, had an impressive network of relationships. This is important in the growth of TEOCO which tend to enjoy the free marketing of their services. The partnering company has also extensive knowledge of the industry. This enables TEOCO to be able to develop the products that are needed in the market. This enables the company to be able to meet the demand of the of the current market through having a shared knowledge of the

The Subprime Meltdown Movie Review Example | Topics and Well Written Essays - 500 words

The Subprime Meltdown - Movie Review Example Many banks, carried away by the rising real estate prices, extended loans to even those people who had a compromised credit history or did not qualify to secure such loans. The banks went extending such risky loans to profit from the high-interest rates agreed upon by such people. Being too overconfident that their creditors will eventually be able to honor such mortgages, considering the rising real estate prices, these banks did not care to be particular about the credit history of many of the creditors. By omitting this cardinal practice they not only compromised the eventual financial health of their banks but also betrayed their shareholders. The irony was that many Western investment firms also gave in to this opportunistic greed and readily purchased these loans from the erring banks to repackage them and sell them as Mortgage Backed Securities to their customers. The net result was that when in 2007 many customers started defaulting on their mortgages, it gave way to a chain reaction, leading to many banks and financial institutions going bankrupt. This avoidable economic debacle was caused by the basic unethical decision made by many banks to extend risky loans to customers with poor credit history. Simply speaking, defaulting customers, irresponsible banks, and unrealistically speculative investment firms were responsible for this fall. Primarily, the parties involved in these acts of omission were guided by ethical egoism. It is an ethical philosophy that lays stress on validating the rightness or wrongness of any action in relation to the extent to which it serves one’s self-interest. The banks and their customers opted for risky mortgages led by their greed for higher profits, even at the cost of forsaking sound financial practices. In contrast, if the investors and financial institutions had pursued a philosophy of ethical utilitarianism, which favors such decisions that enhance positive outcomes for the maximum number of people associatedà ‚  with such a decision, things would have turned different.