Make its products and services more secure as against competitors
The basis of this strategy is the industry threat of new types of criminal activities in the industry. Since the company has admitted about the increased regulation brought by these developments in the industry, it will do much for the company to be formulating its strategy in such a way that it could protect itself from the risks of being victims of bank frauds that could cause the loss of its customers. The company, by adopting this strategy will allow it to make wise use of its strengths of profitable operation, good liquidity and satisfactory solvency.
Profitability is assured if customers are taken cared of and by so doing will create a domino effect on liquidity and solvency. It will become a case of more wealth creating further wealth. 3. Conclusion and Recommendation This paper found that the company is profitable but still see even higher profitability by adopting strategies that would make use of the company’s strengths and would take advantage of the industry opportunities while protecting itself from threats.
One of the proposed strategies is for the company to go for further expansion. It was found that this strategy will allow UBS to take advantage of the industry opportunities of continued growth in the world economy and the continued deregulation of many economies in other countries of the world and this will also have the effect of necessarily building up the company’s resources in anticipation of its sustained growth. Similarly it will also permit UBS to utilize strengths in terms of its current profitability, liquidity and solvency.
Adopting the same would have the company to sustain its present status in global wealth management, investment banking and securities management and global asset management. The other suggested strategy is for the company to makes it products and services more secure as against competitors on the basis of the industry threat of new types of criminal activities caused by globalization. This will cause the company to protect itself from the increased cost of regulation and increased risks of becoming victim of these types of crimes while maintaining the loyalty of its customers which could assure the company of its long term health.
This is of course in addition to making wise use of its strengths of profitable operation, good liquidity and satisfactory solvency. It is a very timely for the company to adopt these strategies that could sustain its top position on the some while improving on other areas of the financial services industry.
Appendix A – Financial Statement (2004 to 2006) and Computation of Financial Ratios