Strategic Plan

Table of Contents

Executive Summary4

Background5

Mission Statement5

Vision5

Environmental Scan6

Legal or the Political Aspects6

Economic Aspects7

Socio-cultural Sector7

Technological Aspects8

Strategies8

Cost leadership8

Differentiation9

Concentration (or "Focus")9

Matrix Formulation Of Grand Strategy10

Strategy Recommendation10

Implementation Plan11

Success Factors13

Functional Tactics13

Resources and Capabilities13

Forecasted Financials and Budget14

Income Statement Evolution15

Balance Sheet Analysis15

Risk Management Plan16

Risk Management steps for E*TRADE16

Three General Methods of Risk Management16

Contingency Plan17

Alternative Source of Revenues17

Public-Private Partners17

Bond Issuance17

Grants18

Executive Summary

E*TRADE evolves from a start-up to a more mature company; it is facing a host of new pressures that make differentiation key in a fight for long-term viability. E*TRADE is fighting back by creating an e-business strategy that integrates diverse parts of its operations—marketing, sales, trading, banking, product development, and finance—to facilitate decision- making and quick market response. Tight integration ensures that when decisions are made, the parts come together quickly to form a cohesive whole that meets customer expectations in real- time.

E-Business impact is not limited to product development and distribution but extends to organizational structure as well. For example, E*TRADE is beginning to cross-sell new financial services to its highly proactive, self-directed customer base. The company is taking advantage of this opportunity because it is focused on gaining market share by scaling its back-end processing engine to dramatically lower its cost structure. To take advantage of cross-sell opportunities to mainstream customers, E*TRADE must make a shift from being a pure-play to a click-and-brick company.

Strategic Plan

 Background

E*TRADE Financial Corporation is a financial service that offers online discount stock brokerage service for self-directed investors. For example, investors can sell and purchase bonds, mutual funds, and stocks. In addition, E*TRADE offers lending products such as money markets, credit cards, and savings, and checking accounts.

The purpose for E*TRADE existence is to provide the consumers with a full service online brokerage, investing, and banking solutions that will deliver at a competitive price. E*TRADE is a large company that has an increasing growth market in the company. In 2010, E*TRADE employed a little more than 2,500 employees and has 28 retail branches across the United States. The headquarters is located in New York City where the products and services are forecast to increase in the market. Also E*TRADE empower individuals to take control of their financial futures with tools successfully to meet the long-term investing goals.

E*Trade's (ET) Mission Statement

Mission Statement

To create long term shareholder value through superior financial performance driven by the delivery of a diversified range of innovative, customer-focused financial products and services and supported by an operating culture based on the highest levels of teamwork, efficiency and integrity.

Vision

Success for their customers means success for them. Which is why they have a vision for the future that's all about creating new solutions to empower their customers. It's about giving their customers the right products, tools, content and access to enable their success. E*TRADE's bottom line commitment has always been about helping people take control of their financial lives. But it works both ways: added customer value means added value for E*TRADE. Their customers now trust them with $66 billion of their money, and they are committed to giving them more reasons to trust ...