Client Centric Aproach for Brokerage Business Essay

Client Centric Aproach for Brokerage Business - Essay Example For business such as brokerage firm, it becomes more important that they should evolve and embarrass client centric approach because by building long term relationships, the firms can achieve the necessary breadth and focus on its customers to achieve strategic superiority but also gain necessary competitive advantage over their competition. It is therefore very critical that the firms involved in business which requires different and potentially sensitive relationships with the clients, a client centric approach would be a viable and effective alternative to achieve the strategic objectives. However, such approach require a collaborative approach since engaging with the client from the initial stages of registering as a client to the process of conducting business through the brokerage firm requires a very focused strategy to develop effective relationships with the clients. This paper would attempt to understand and analyze how the client centric approach would allow a brokerage firm to gain client assets/share of wallet. The focus of this paper will be two fold. First it would discuss what the client centric approach is and secondly its application on the brokerage business will be studied. A brokerage firm acts as an intermediary between the buyer and the seller, typically in a stock market. Due to peculiar nature of the stock exchange functioning, there is a greater need for the financial intermediaries who play the role of a link between the buyers and the sellers so that the exchange against some consideration can take place. A discount broker is a person who carries out the business of buying and selling at much reduced commissions and fees etc. The purpose of the stock broker therefore is to address that segment of the market which could not otherwise afford the usual high rates of the brokerage firms which provide similar services. In doing so, firm tend to attract bulk of the small investors especially who due to lack of capital. The focus of such investors therefore always remains on reducing the transaction costs so that they can maximize their profits. Firms offering such services therefore tend to be generalized in nature as they offer services which are hardly differentiated therefore such firms need to develop their specialties based on pricing as well as non-pricing factors. Since such types of firms are offering discount services therefore they are already leading in that area however, non-pricing factors include the use of different and innovate means of attracting and maintain customers. Being client centric is one such mean through which such type of firms attempt to attract clients. In order to assess the client centric approach being adopted by discount broker firm, we must also understand as to how the discount firms perform their jobs. Discount firms do not offer advice to their clients and simply sell out whatever you have therefore this reduces their spreads and offer services which are discounted. It is also argued that the discount brokers are used by the experienced investors who can do their own research and only

Rochester Manufacturing Corparation Case Study Example | Topics and Well Written Essays - 1000 words

Rochester Manufacturing Corparation - Case Study Example The firm believes that 30% of the people use a good estimate of products suitable for the FMS. This provides a good incentive for moving ahead with the FMS now. The 30% is viewed to fit very nicely into a â€Å"family†. Moving ahead with the FMS, it is also viewed to reduce the variety. The traditional numerically controlled machine has a high variety. Therefore, moving ahead with the FMS now will be associated with a reduction because of higher utilization in the number of pieces of the machinery. In addition, the resources are scarce and hence proper utilization should be enhanced. By utilizing the resources, the profits will also be utilized. In return, the production will be increased if the variety is utilized (Khanna, 2007). The main objective of any firm is profit maximization and cost minimization. If the FMS will have a lower variety, the costs will be minimized and profits will be maximized. The lower variety is a very big motivation of moving ahead with an FMS now. The firm should be able to go from 15 to perhaps as low as 3. This shows a reduction of 12 in the variety. This variety reduction will create more room for an extra production. The firm will be able to expand its production by perhaps four times. It means that the efficiency of the firm will increase by moving ahead with the FMS now. Moving ahead with the FMS now is also associated with a reduction in the floor space from 20,000 square feet to about 6,000 square feet. This shows a reduction by 6,000 square feet. Any organization strives to have a suitable space to carry out its operations. A suitable space will reduce the congestions within the organization. Congestions are associated with various disadvantages. Also, moving ahead with the FMS now will also be associated with the through put of orders improving with the processing of the family parts in1 or 2 days rather than 7 to 10. This shows a good processing efficiency. If orders are processing very fast, it will