Group Members Present and Contributing: : Joseph Bagh, Harley Lavelle, Asin Islam,
Yuvneet Sandhu, David Sawyer, Amy Lee
Scope of Activity:
This activity focuses on applying the principles of micro- and macro-
environmental analysis to future decisions of the Royal Bank of Canada
(RBC). The activity also covers the fundamental principles of competitive
and industry analysis to the situation facing Samsung within the global
electronics manufacturing industry.
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THE MARKER IS WELL AWARE OF THE TIME RESTRICTION
ON COMPLETION OF THIS ACTIVITY AND WILL ASSESS
ACCORDINGLY.
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ROADMAP FOR ACTIVITY COMPLETION
The following provides direction for how to complete your group
submission successfully. First, you need to identify the critical facts that are
necessary (declarative knowledge). Then you need to know the steps to
organize and apply the factual knowledge to answer the question posed
(procedural knowledge). Finally, (conditional knowledge), you need to be
able to identify and pull out the pertinent knowledge using the right
procedures and apply it to the situation.
Submission
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experts to believe that
a portion of Canadians
are not financially
astute when it comes to
various banking
options.
In 2000, RBC had 1300 x In 2000, RBC had 1300
branches across Canada, branches across
and in 2015 there were Canada, and in 2015
1200. there were 1200. This
decrease in face -to-
face banking
demonstrates the
global transition to a
technologically
integrated world.
Samsung’s Q2 earnings x Samsung’s Q2 earnings
report shows that the report shows that the
company enjoyed its most company enjoyed its
profitable quarter in two most profitable quarter
years. in two years. The
steadfast success of
mobile devices and
Samsungs majority
market share are to
thank for the
profitability.
Sales and profits of x Sales and profits of
smartphones and tablets smartphones and
weakened and growth was tablets weakened and
stagnant over the previous growth was stagnant
year. over the previous year.
Many economists
believe this is due to
the widespread belief
that technology is
going to take reign
over society as we
know it.
Samsung's revenue grew x
by 5% vs. the previous
year, indicating that the
launch of the S7 series cell
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phone (which was the
main driver of this
growth) has been a success.
1. In the Column C, discuss how the factors that you identified in the
Column A will impact the current and future marketing strategy and
decision-making of the company. For example, if the company is
known as an innovator, there is pressure to bring out revolutionary
products rather than better versions of existing products in order to
keep up its image.
Column A Column C
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fine line between an incredibly
successful institution that
ammasses large amounts of
profit, and an institution that
exists to serve the people. In
order to achieve this reputation,
RBC must implement
straightforward marketing
material, while not being overtly
boastful of their returns.
Collaborator Factors Impact
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acceptance, and encouragement of
diversity. If RBC can show an
unrivaled desire to assist immigrants,
and help them develop financial
strength and understanding in a new
country, it will demonstrate to existing
clients that RBC is committed to noble
pursuits, and will help bring in new
customers, as well as retain the current
ones as they feel proud for banking
with RBC.
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donations, and global access.
This may prove difficult as
people who bank with credit
unions often have a distaste for
large banks, however with RBC’s
notoriety, and widespread
impact in the Canadian financial
market it would not be difficult
for them to create a credit union
subsidiary. This will ensure they
do not lost market share to
credit unions, and they can
provide the same product
people are leaving them to
obtain.
Customer Factors Impact
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feeling almost as if they are doing a
favour to the bank, and not vice versa.
Resulting in recurrent uses with the
bank.
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connection but no phone
plan. In another instance,
for parents who may not
think their child is ready
for a cellphone, the Ipod is
a ‘step-below’, introducing
this product to a new
demography.
1. In the Column A, identify two factors in the category that are most
relevant for the company. For example, under the political-legal
category are included factors such as the impact of financial
regulations on banks.
2. In the Column C, discuss how the factors that you identified Column
A will impact the current and future marketing strategy and
decision-making of the company. For example, banking regulations
require a certain amount of liquidity (cash on hand).
Column A Column C
Political-legal Factors Impact
1. Brexit vote 1. Following the vote, the British pound
effected 70,000 fell to its lowest level in 3 decades. This
Canadians living made Canadians less likely to invest in
in the U.K RBC, or any other bank during the
2. The Brexit vote financial uncertainty. RBC should
means that the anticipate a lack of investments and be
interest rates in prepared for this setback.
the US won’t 2. As a cause of this, investors in the US
climb as will have an easier time investing with
previously RBC due to the more stable interest
expected. rates. Making it easier for RBC to
market investment opportunities.
Economic Factors Impact
1. Many households 1. A 2012 survey showed that many
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do not have households did not have the financial
financial safety safety nets that would help them come
nets. back from a financial shock, however
2. Slow growth in the households with high income did.
private Using this knowledge it would be smart
investments for RBC to market towards the middle
and lower class households to provide
them with a safety net.
2. Canada experienced low growth in
private investment RBC would need to
focus on attracting customers that are
interested in investing in the future
because the U.S recovery should
increase the demand for exports from
Canada.
Socio-cultural Factors Impact
1. Online Banking 1. RBC should make their internet
2. More presence known so that customers can
Programmatic use them for their online banking and
internet transactions.
2. Programmatic advertising is now also
used for online services, thus creating a
broader base for advertising the
company’s message.
Technological Factors Impact
1. Increase in 1. with the increasing use of smartphones
smartphone use it is important for RBC to focus on
2. Marketing using ways to incorporate their services into
technology and cell phones. services like paying with
the internet. your phone, or depositing checks using
your smartphone camera. in the future
RBC should focus on finding new ways
to incorporate cell phone use into their
banking plan.
2. The internet has introduced new
marketing platforms for all businesses,
RBC should invest in hiring people
with technological backgrounds.
Metrics
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a. finding the relevant data in the background material
b. showing all the relevant calculations to arrive at the answer
c. discussing the implication of the answer on one or more of the
micro-environmental factors.
Question 1
In 2005, RBC had 60,812 employees. By 2015, this had grown to
72,839.
A) What is the percent change to the nearest percent for this growth
between 2005 and 2015?
B) If the number of employees is expected to grow by a similar
percent over the next decade, to the nearest whole number, how
many employees will RBC have in 2025?
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more strategies, ideas, etc
Question 2
In the background information provided are data on the big banks’
profits for Fiscal 2015 and Fiscal 2014. Describe the profit changes
using percent change (to the nearest percent) for each bank
individually and the sector as a whole.
Question 3
According to Statistics Canada, there were 25,922,300 Canadians who
filed tax returns in 2015. Of these 5,974,180 made an RRSP
contribution. This represented a 3% decrease from the number of
contributors in 2014. How many taxpayers made an RRSP
contribution in 2014 to the nearest whole number?
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This means that 184,768 fewer
0.97x=5,974,180 people made an RRSP account
in 2015. This shows that fewer
x=6,158,948
people are preparing themselves
for future retirement, and
possible financial emergencies.
Metrics Question 4
In the background information provided are data on the global
electronics industry’s 2015 revenues. Calculate the Herfindahl Index for
the global electronics manufacturing industry for year 2015 based on
the data provided.
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