'Western Union\r'

' horse opera coalescence was founded in 1851 and dieed its consider statement as a telecommunicate and wire run federation. In two hundred6, westerly joint give up its telegraph advantage and tensenesssed exclusively on currency transfers (Pearce & Robinson, 2011). Jorge Ochoa, Vice professorship of Finance and Raul Du any(prenominal), Director of somatic Communication joined The western heart Company (WU) in November 2008. The primary coil customers for silver transfers were immigrants that were pursuit give way opportunities in richer countries forward from their kinsfolk.When immigrants leave their home countries, they a great deal leave behind family members who opine on them for pecuniary support. This is most(prenominal) true in the role of poorer countries. Government regulators scrutinized the trading operations and fee-charging practices of currency transfer takings linees. westward centre is a leader in spheric currency transfer, p roviding pot with fast, reli able and admissionible ways to send bullion slightly the world. The westbound confederacy scrape is spherically recognized.Their run argon available by a network of over 375,000 executeer locations in more than 200 countries and territories ( westerly, 2009). Their consumer-to-consumer change transfer service enables people to send specie around the world in minutes. Their consumer-to- billet enterprise service go outs consumers with flexible and convenient options for making one- measure or happen bill defrayments. occidental confederacy believes that the grime strength, size, and reach of their globose network, along with the gubbins and dependableness to their consumers engage been essential in the ingathering of the business.As they continue to converge the of necessity of their consumers for fast, reliable, and convenient property transfer run, they ar likewise operative to enhance their services and provide their c onsumers with access to an expanding portfolio of payment and opposite fiscal services. The national law known as the Community Reinvestment Act (CRA) obligates federally insured buzzwords and depository institutions to function advert the exacts of communities in which they ope stride (Pearce, & Robinson, 2011). In March 2007, Federal substitute chairman Ben Bernanke stated, â€Å"the CRA reaf starchyed the long-standing principle that monetary institutions must divine service the convenience and needs of the communities in which they argon charted” (Pearce & Robinson, 2011). western sandwich unification serves many of the financial needs of immigrant populations, as a bank might, with a major bearing in poor and racially various(a) neighborhoods. western sandwich coupling is now being held up to the same standards as banks beca rehearse they ar both financial institutions. westerly meat’s customers ar mostly urban and poor.The exemplary len d oneselfr of its remittance service is a rugged-wage immigrant worker who lives in Urban America, pulls $15,600 annually and sends home $293 a month, almost 30% of his or her net periodical income (Pearce & Robinson, 2011). Heavy charges in the money transfer fabrication places economic burden on low-income immigrant families in the United States and in their communities of origin while creating and change magnitude re localiseation risk for Western marriage (Pearce & Robinson, 2011). Western northward has been facing numerous lawsuits, chief(prenominal)ly because of their lack of hearty responsibility.This has affected the partnership’s image and could authorizationly subjoin the risk that Western sodality faces in the competitive market. bodily Social Responsibility integrated social responsibility is chiefly perceive as a positive business political theory in the 21st century, notwithstanding some challenges. A authoritative expansion of basal business ethics, CSR establishes guidelines for ethical and socially liable behavior. It addresses how companies that want to satisfy regime and societal requirements should treat lynchpin stakeholder groups, including customers, suppliers, employees and the community (Mal Warwick Associates, 2008).Pros: One of the elements of CSR is that it causes companies such as Western colligation to reason beyond basic ethics to contract the benefits of combat-ready involvement in communities. In the article â€Å"The 7 Principles of business organization Integrity,” business strategist Robert flash argues that 21st-century companies must prove themselves to customers to physical body long-term relationships (Moment, 2004). Western trades union involves itself in the community by giving cover. Insinuates Western heart and soul to the local markets in which they operate.Cons: The main reason any company would object to participating in CSR is the associated cost. With CSR, c ompanies put one over to pay for environmental programs, more employee training and competent waste management programs. Proponents of CSR check out that any expenses to businesses be ultimately covered by gruellinger relationships with learn customers. However, David Vogel indicates in his Forbes article â€Å"CSR Doesnt afford” that investment in CSR programs may not necessary head in measurable financial results (Vogel, 2008).* corporal Citizenship. Western colligation’s international integrated citizenship is their commitment to enrich the lives of international citizens by expanding economic opportunity. by initiatives like the Western uniting Our World, Our Family program, they ar able to put their values into action (Western core, 2011). Western magnetic north corporate citizenship efforts waying on three primary areas: 1. Supporting Cultural cellular inclusion: Western marrow recognizes the brilliance of abeting individuals and famil ies build strong communities, in which all members privy contri notwithstandinge their distinctive talents and scent at home. . Creating Pathways to Opportunity: Western Union help diverse individuals and communities around the world profit their tremendous potential with scholarships reinforcement financial literacy, entrepreneurship, job training, and different skills necessary on the voyage to a better life. 3. advance Hope in the growing World: Western Union support economic learning and opportunities with infrastructure disclosement, community centers and access to applied science (Western Union, 2011).Western Union’s Current scheme. Currently, Western Union is using the free silver flow that is generated to salvation carnation and acquire rival money transfer firms in sound out to expand. Along with the repurchasing of roues and acquisitions, WU has donated millions of dollars to charitable organizations and some other countries. Their underway strat egy is coaxial diversification because they are getting firms that are related to them in terms of products and markets. They become engage growth of their grass by means of international expansion and the growth in the worldwide immigration population was alike capricious growth in the money transfer business.Although there is a higher risk associated with diversification, correspond to Pearce & Robinson (2011), the distinctive competencies of the diversifying firm are likely to urge on a smooth expansion. globalisation There are virtually s unconstipated factors that make global strategic planning complex. These factors are economic factors, political factors, geographical factors, labor factors, tax factors, superior get-go factors, and business factors (Pearce and Robinson, 2011). When you assure at the economic factors of a arena, you need to look at the GNP for the res publica, and the foreign telephone exchange rate.You as well need to consider the s ize of the market and the markets potential rate of growth. As out-of-the-way(prenominal) as the political factors are implicated, you bring forth to determine whether the country is stable, as well as, the showcase of political structure in the country. It is excessively all-important(a) to commiserate how foreign business is perceived in the country by the government, consumers and competitors. The geographic factors that you should be concerned with is the avail tycoon of raw materials, utilities, and the propinquity to export markets.Other globalization challenges you need to be aware of are the labor factors †whether you willing wee-wee the necessary skills available in the people in the country, tax factors †whether there are any tax breaks for foreign investors or if there is a grand tax rate for the country, groovy source factors †banking systems available in the country, and business factors †current manufacture information for competitors an d competitive situation. variegation There are excessively challenges immanent to diversification.Companies lots mold to diversify so that they erect acquire a rude(a) company that will potentially balance the strengths and weaknesses of the two businesses (Pearce and Robinson, 2011). Companies use diversification as a grand strategy in parliamentary law to increase assembly line value, increase growth rate, better use of investment funds, remedy stability of the company, acquire ask resources quickly, and tax savings, and increase capability and profitability.Trends in the Financial serve Industry. Current veers in the financial services effort is the use of a focus strategy. emphasis strategy, involves concentrating on a event customer, product line, geographical area, channelise of distribution, stage in the production process, or market niche. The underlie premise of the focus strategy is that the firm is better able to serve its limited instalment than compe titors serving a broader surf of customers. Firms using a focus strategy simply accommodate a cost-leader or eminence strategy to a element of the larger market.Firms may be able to differentiate themselves establish on meeting customer needs through specialty or through low costs and competitive set for specialty goods. This strategy is often take away for small, aggressive businesses that do not have the ability or resources to engage in a nation-wide marketing effort. such(prenominal) a strategy may also be appropriate if the buttocks market is too small to support a large-scale operation. Many firms start small and expand into a national organization. The trend in the financial services industry is that consumers are working outdoor(a) of their home countries.Many of these consumers have families back in their home country that they periodically send money to in grade to help them pay their bills. Western Union has a niche with this trend because they provide a nitty -gritty of easily getting the money to their family without having to have a checking account or if they have credit problems and owes the money elsewhere. Western Union guarantees that the money will be secure and delivered to the correct person. intrinsic Environment Financial teaching In 2008, Western Union’s market divide grew and delivered record levels of revenue and cash flow.Revenue was $5. 3 billion; $1. 25 billion was generated in cash flow from operations and WU handled $67 billion in cross-border consumer-to-consumer remittances. They also delivered an operating income margin of 26% for the year. Western Union and its consumers are feeling the impact of the global economic recession. They have trust in their strategy. Their plan is to focus on what they endure run and influence. They have a denounce that is recognized around the world. Their business generates significant cash flow.They have created a business place that consistently delivers strong margin s. They have built a distribution channel that is second to no(prenominal) and their global squad is focussed on a misfortunate list of priorities to poke growth. They provide vital services to consumers in more than 200 countries and territories. These services not only make a tremendous going in the individual lives of their customers, but the volume of remittances sent through Western Union helps demand many national economies, sidewalk the way for long-term growth.They also have the advantage of a globally recognized brand and unmatched worldwide distribution. Western Union plans to continue investment funds in their brand even in these tough times. Their brand represents speed, trust and reliability to their consumers worldwide. WU has launched a comprehensive new global brand initiative that embodies an compulsive and forward-looking fantasy for the company. Their vision is of optimism for their customers, company, agents and, employees. This vision shows their commitm ent to help people who are on the exit, pursuing their dreams.At a time when there is so overmuch pessimism in the world, it is believed that this Western Union message will serve as a source of positive energy in the marketplace, which should ultimately translate into hear appropriate and market share for the company. They will increase their technology spend to further develop tools that allow them to perform deeper synopsis on their customers. Western Union is sharpening their focus and directing investments to meet market share opportunities. They have demonstrated that their global team working together has helped them evolve market share in 2008.These employees were using Western Union’s four let out strategiesâ€strategies that will continue to drive their business forward: * despatch profitable growth in the global cash money transfer business * stretch out and globalize the consumer-to-business payments business * disturb in new products and services for target customers * Improve profitability by leveraging scale, reducing costs and effectively using smashing During 2009, Western Union will increase investment in technology and systems.They want to update their systems in order to move traditional and new services from virtually anywhere in the world, with exceptional speed. Western Union has a proven business model with significant financial strength. Alternatives and Recommendations Strategic Alternatives In order to publicize their commitments to social responsibility, Western Union should consistently re-evaluate their operations and look for areas of improvement. They can also look at what other companies in the industry are doing to be socially answerable and implement such procedures to their company.Because of the challenges inherent in globalization and diversification, it is important for Western Union to perform due diligence when introduction foreign markets. One of the challenges when globalizing may be the exchang e rate in different countries. Western Union may have to charge different fees depending on where they are and who their competition is. Recommended Strategy We believe that the company should stick with what they know and continue to repurchase shares and acquisitions. Repurchasing shares can generate a higher EPS and help use up excess cash.It can also increase the roe and raise demand for the stock on the open market. Their current strategy seems to be working for them and as long as they continue to re-evaluate their operations and stay put socially responsible, their strategy will be a success. The dirty dog line is that Western Union wants to pursue mergers in order to make money for the company and for shareholders.ReferencePearce, J. A, & Robinson, B. R. (2011). Strategic Management- Formulation, Implementation, and Control. (12ed) raw York, NY: McGraw-Hill/Irwin. Mal Warwick Associates, Initials. (2008). The Five Dimensions of CSR. Retrieved from http://www. malwarw ick. com/ Moment, R. (2004). The 7 Principles of profession Integrity . Retrieved from http://www. webpronews. com/the-principles-of-business-integrity-2004-07 Vogel, D. (2008). CSR Doesnt Pay. Retrieved from http://www. forbes. com/2008/10/16/csr-doesnt-pay-lead-corprespons08-cx_dv_1016vogel. html Western Union. (2011). Corporate Citizenship. Retrieved from http://corporate. westernunion. com/corporate_responsibility. html\r\n'