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Merrill Lynch SWOT Analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

Merrill Lynch
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 38 countries and territories. Merrill Lynch has a considerable advantage over its competitors, being a major market player in most of its businesses lines. The company is a leading global investment banking firm that participates in virtually all aspects of investment banking for corporate, institutional, government and municipal clients. Diversity of offerings allows Merrill Lynch to maximize its opportunity base and minimize losses in declining segments. However, the companys exposure to subprime mortgage backed assets and the consequent losses could undermine its position in the global investment banking industry.

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Merrill Lynch SWOT Analysis


Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Broad offerings Strong presence in global wealth management (GWM) Growing international business

Weaknesses Credit ratings downgraded

External

Opportunities Enhancing scope through acquisitions Expansion in Middle East Positive outlook for asset management industry

Threats Consolidation in the banking industry Increased regulatory pressures for investment banks in the US Credit crunch

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