Capital One

1. Evaluate Fairbanks' approach to entrepreneurship in the credit card industry.

The approach of Faribank is quite innovative and that has led to the success.  His approach has been combination of empowering the human beings with giving them best of the infrastructure. One can say that he was successful in bringing the following combination:

• The people (the founders, including the management team as well)

• The idea (as developed and refined concept in order to exploit market opportunities)

• The resources (which are important for the setting up of the business and making it grow)

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He leveraged the above to introduce innovative products in the credit card industry. One such example is balance transfer which propelled the success of them.

2. Identify Capital One's key functional strategies, company policies, and organizational structure and how they support/fail to support the company's overall strategy and objectives.

Functional strategy

It includes the strategy for each functional areas. Thus it includes marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, and information technology management strategies. The emphasis is on short and medium term plans and is limited to the domain of each department’s functional responsibility. Each functional department attempts to do its part in meeting overall corporate objectives, and hence to some extent their strategies are derived from broader corporate strategies.

Case of Capital One

Its financial strategy is to maximize the NPV which is a valid strategy as it will help in maximizing the shareholder’s wealth The marketing objectives of the company are quiet effective and this has helped the company to diversify into various domains. The company operates in Auto Loans,  Small Business, Credit Cards. The goals are measurable because the company has a excellent human resource...