Financial Analysis : Countrywide Financial Corporation

According to Nicole Fallon of the Business News Daily, a SWOT analysis is an analytical framework that can help any company face its greatest challenges and find its most promising new markets, by identifying the organization’s strengths, weaknesses, opportunities and threats (2017). It allows for an extensive evaluation of the company’s internal and external resources as well as current and future threats that the company may face. This process can be a great asset in determining and exploring new initiatives, as it helps to identify areas of improvement within the organization while helping with the facilitation and implementation of new business policies. This process is crucial in refreshing the strategies and tactics of any

A SWOT analysis is a tool used to identify the strengths, weaknesses, opportunities and threats of an organization. A SWOT model measures what an organization can or cannot do as well as the possible opportunities and threats. This is done by taking data from the organization’s environment, analyzing the information and separating it into the internal (strengths and weaknesses) and external (opportunities and threats). When this is completed the analysis can create a plan for the organization to achieve its goals, and identify what difficulties must be overcome to attain

SWOT refers to the Strengths and Weaknesses of an internal factor of a firm and the Opportunities and Threats of an external environment facing the firm. SWOT analysis is a technique widely used by managers to provide strategic overview of the company. The best approach and most effective technique to SWOT is maximizing the company strengths and opportunities and minimizing weaknesses and threats. When this assumption is applied accurately, the outcome of the company can be a very powerful and successful.

SWOT analysis involves identifying business’s strengths and weaknesses, and examining the opportunities and threats which may affect the business. SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective.

SWOT Analysis: A tool for examining a company and its environment. Defines the company’s strengths, weaknesses, opportunities, and threats

I would suggest to a company to use the SWOT technique to find their strengths, weaknesses, opportunities and

“A SWOT Analysis is the most used tool for audit and analysis of the overall strategic position of the business and its environment. Its principal purpose is to identify the strategies that will create a firm-specific business model. The plan aligns the organization’s resources and capabilities to the requirements of the environment in which the firm operates. The analysis is to evaluate any potential and limitations and the probable/likely opportunities and threats from the external environment. The results provide the positive and negative factors inside and outside the firm that affect the success.” A SWOT analysis is conducted to determine the strengths, weaknesses, opportunities, and potential threats to the organization. ("SWOT

A SWOT analysis is the strategic business plan that shows the important aspect of a company, which details the company’s strengths, weakness, opportunities, and threats (Simoneaux, 2011). Many SWOT analysis are done at companies to make sure that they are aware of what health of their organization. The SWOT will have the company to identify where they can use help, and where they are doing well.

On its way to becoming the nation’s largest mortgage lender, Countrywide Financial became one of the nation’s largest business failures in history. Started in 1969 by Angelo Mozilo, and partner David Loeb, Countrywide had become the largest provider of home loans in the United States, with one in every six U.S. loans being created by Countrywide. However, according to Bethel, Countrywide’s entire operation, from its computer systems, incentive pay structure, financing arrangements, was meant to obtain maximum profits out of the mortgage lending programs no matter what the cost. Countrywide’s initial stakeholders consisted of employees, investors, regulators, clients, communities, and as well as shareholders. Furthermore, because of its

Wells Fargo, based in San Francisco, was one of the most respected financial institutions in the country, viewed as a kindly, exceedingly well-run neighborhood-oriented bank with only modest aspirations for the rough-and-tumble world of Wall Street investment banking. That kind of folksy appeal attracted the attention of the billionaire investor Warren E. Buffett and his company, Berkshire Hathaway, the bank’s largest investor, with a 10 percent stake. Mr. Buffett’s imprimatur helped make Wells Fargo the nation’s most valuable bank.

A SWOT analysis is an analysis based on the strengths, weaknesses, opportunities, and threats of a company. SWOT analysis is the first phase in gathering information for strategic planning (Wheelen, Hunger, Hoffman, & Bamford, 2015). A SWOT analysis plays a significant role in strategic planning because it is the discovery phase of what the company needs to succeed. It is a tool used to examine a company’s state of health and improve on its opportunities. It gives a detailed understanding on areas that need attention as well as areas that are striving. It also gives companies a clear view of the advantages and disadvantages they have over their competitors. A SWOT analysis was created for The Home Depot to get a better understanding of the company and its strategic planning.

A SWOT analysis is a distinguished instrument for examination of a company’s strategic situation and environment. Its objective is to recognize the schemes that will best support a business’ assets and competencies to the desires of the market. It is the basis for assessing the core abilities and restrictions and the prospects and dangers from the external environment. SWOT stands for: strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are deemed internal influences where there is some level of control; while opportunities and threats are deemed external influences where there is essentially no control.

Armstrong et al. explain that SWOT analysis will allow companies to identify what are their strengths, weaknesses, opportunities, and threats in order to determine their focus to acting inside the market. Moreover, will allow companies to make strong decisions by directing their business to products and services that the customers require (2015, pp. 62-63).

It is important for a company to routinely evaluate its’ image and purpose. Failure to do so may result in decreased revenue and clientele. An

SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.