Question:
Discuss about the Implementation of Digital Communication tools from Direct and Instant messaging to Social Intarnet, chat rooms to discussion forums on Charles Schwab brokerage firm and how can affect the work of each department.
The report gives an overview of the business communication undertaken by Charles Schwab Brokerage Firm. Thus, the report gives an overview of the Charles Schwab Brokerage Firm. There is also discussion on the importance of timing and up to date information in a financial industry. The report also discusses about the real execution of the communication strategies that includes chat rooms, discussion forums, internal blogs and instant and direct messaging facilities. Further, the report also discusses about the impact of the communication strategies on the brokerage firm. There are also necessary recommendations provided on the improvement of the company.
Charles Schwab Brokerage Firm is largest in terms of a brokerage firm with around 10 million active brokerage accounts of clients and $2.90 trillion assets of Client. The firm found by Charles R. Schwab in the year 1971 located in San Franscisco, California. The company however became Charles Schwab & Co., Inc. in the year 1973. The company offers services to institutions and individuals that make online investment (“Investment Services: Stocks, Mutual Funds, ETFs | Charles Schwab”, 2017). Moreover, the company also offers a platform for online trading where sale and purchase of financial securities takes place. The financial securities offered by the company includes preferred stocks, common stocks, future contracts, mutual funds, exchange traded funds and investments on fixed income. In addition, the firm also provides cash management services and margin lending which they do with the help of registered investment advisors.
Presently, the firm has 335 branches with around 16,000 full time employees. These employees are responsible for the operation of the four primary divisions that includes wealth management, banking, trading and investing (“Answers to Investing & Retirement Questions | Charles Schwab”, 2017). The company however has a prolonged history of corporate social responsibility that included employee volunteerism, community involvement and financial education program. However, the initiatives undertaken by the company includes:
The customers of Charles Schwab Brokerage Firm can feel confident about the fact that the company ensures safety of their personal information (“How to Invest | How to Invest Money | Charles Schwab”, 2017). The Federal Deposit Insurance Corporation (FDIC), Customer Protection Rule and Securities Investor Protection Corporation (SIPC) along with Llyod’s coverage of additional SIPC make sure that the customer does not undergo extreme financial losses even if the company goes bankrupt. The firm’s security guarantee protects the customers from 100% losses.
Timing
Market timing plays a very important role in the financial industry. The timing plays an important role due to the increasing message rates, higher trading of frequency and deeper analytic queries. This has set the need for precision of micro second level precision in the financial sector (Barron, Byard & Liang, 2013). Thus, market timing refers to the strategy that deals with making buying or selling decisions of financial assets through the prediction of future movements of market price. The prediction however depends on outlook of the economic or market conditions resulting from fundamental or technical analysis.
Market timing is sensible when there is an apparent bubble that has the capability of lasting for many years before the collapse of the prices. However, market timing is another name that defines trading (Shichor, 2012). Timing is crucial because every trader attempts to predict the futuristic price movements regardless of the fact whether trading is on individual stocks or collection of stocks including mutual funds. In absence of market timing trading of brokerage firms would not have taken place.
Up to date Information
The financial service industry has a vital role in World economy as it helps in moving money from entities that has excess funds to the ones that are in dire need for fund. Therefore, the financial service industry includes firms engaged in activities like lending, investing, insurance, trading, securities, brokerage firms and security insurance. Their clients however include individuals, non profit organizations, businesses and agencies of government (Poess et al., 2014). Of them, brokerage firm facilitates in the selling and buying of financial securities amongst the seller and the buyer. These firms trade securities and public stocks through its stockbrokers. Such firms are also responsible for offering margin loans for purchasing investments on the credit subjected to the agreed conditions and term. However, the traditional brokerage firms are source of updated stock quotes as well as prices. Thus, up to date information helps financial service industry in keeping a track of these stocks.
Thus to conceive, implement and ensure actual execution of communication strategies like direct and instant messaging, chat rooms, internal blogs and discussion forums there is the need for three critical components (Downs & Adrian, 2012):
The first step refers to the implementation of a higher level strategy. This includes increasing awareness, community and generation of publicity.
The second step refers to the mid level strategy which mainly focuses on increasing the traffic.
The third step however refers to low level strategy where the focus is mainly on the fact that the implementation of these communication strategies proves to be beneficial for the financial sector.
Instant and Direct Messaging
The Direct and Indirect messaging facilities enables people in using chat communication via internet for relaying real time information in back and forth manner. Often this is as a tool for social media networking however many company makes use of these instant messaging facilities as part of their business routine (Pazos, Chung & Micari, 2013). The instant messaging facilities are communication strategies with various advantages and disadvantages mentioned as follows:
Ensure Cost Saving
The financial sector through facilities of instant messaging enables real time communication among two people in any portion of world without having to pay charges for the domestic or international distances by only using a telephone. It is these phone companies that offer various plans for this unlimited instant messaging across local and long distance. Thus, the reduced cost associated with the instant messaging facilities proves to be beneficial for the financial industry.
Ensure Convenience
The financial industry through the instant messaging facilities also ensures convenience as they allow fast real time conversation. Thus, the instant messaging facilities will not stop a business associate from whatever he or she is doing in order to answer to the higher authorities.
Invitation to Virus
In instant message facilities the sender possesses the power to send files during conversation. Though this amounts of some amount of convenience amongst the business associates but at the same time can come across as an internet criminal or hacker. Instant message invites viruses that can not only destroy the entire network but also the computer.
Risk of Sharing Sensitive Information
There might be chances when the instant messaging program gets hacked by the criminals and therefore important messages get encrypted without prior knowledge to the financial industry. Sharing information through instant messaging therefore becomes a risk for the future and current projects of the company.
Businesses make use of Chat rooms for connecting with other office, potential customers and clients (Wild, Wild & Han, 2014). There is a place for chat for almost every company which enables them to interact quickly with the visitors. The benefits of having chat rooms are as follows:
Ensuring Brainstorming:
The Chat rooms ensures the most secure location for the employees of any financial company for the purpose of meeting and brainstorming
Enables Conferencing with the Clients:
The Chat rooms enables the users to take a part in the discussion from any location and thereby come to any ideal solution (Jenks, 2014). Thus, the real time interactions do not require the employees to closely sit together which makes the discussion more comfortable.
The concept of live Chat room has become quite common for business websites as they enable them in providing immediate answers to the client questions.
Ensures Distance Training
The chat room provides easier and lower cost means for the training of the employees. However, the trainers can be online through chat at varied points throughout the week thereby allowing employees in accessing training as per their convenient time (Chang & Wang, 2012).
Employee Support
Chat room can also act as a support for the employees as they can clear their queries by entering into a live chat.
Leads to Enhanced Productivity
Through the live chat room facilities employees tend to become more productive as they do have to travel for attending a conference or discussion.
The discussion forum plays a crucial role for any financial industry and people get attracted towards any discussion forum for the following reasons (Hartman, DesJardins & MacDonald, 2014).
Ensures Providing Customer Support
The financial industry focuses on undertaking discussion forum for ensuring happy customers.
Helps in Retention of the Audience
The presence of the discussion forum also helps audience retention. The industry can however create such forums either through social media platforms or a well designed website.
Helps in Market Research
However for any business market research is an important aspect. Therefore, the financial industry must do it rightly by adopting the right approach (Quinn, 2014). Thus, collection of information should be done in a manner so that the audience do not act like guinea pigs. It is here that discussion forum comes into play provides information related to market.
Enables Personal Interaction
Most of the clients look forward to invest in a company with a good image. Discussion forum not only helps in personal interaction with their clients but at the same time helps in portraying a good image of the company.
Provides Customer Based Support
The presence of discussion forums enables the company in answering the questions rightly. This procedure thus might have a dramatic effect on the retention of the customers.
Enables Project Management or Collaboration
There are times when a financial company finds itself in a soup as it is unable to find the right approach that works for the company. However, discussion forum helps in finding such approach.
Helps in Creation of Knowledge Base
The knowledge base is important for a financial company as it beneficial to the clients, customers and employees (Jussila, Kärkkäinen & Aramo-Immonen, 2014). This is however enabled through discussion forum. In addition, this also helps for on boarding of newer employees
Internal Blogs will enrich the financial company in a number of ways which are as follows (Treem & Leonardi, 2013):
Internal blog acts powerful tool for the financial industry in terms of knowledge sharing and information. When a change in an organization needs to communicated to everyone then blogging seems to be very helpful.
An internal blog helps in effectively communicating the vision of the company and its core values to the employees. This helps the employees in collectively working towards them.
The internal blog also aids the employees in publishing a post and accordingly gather ratings and comments for such discussion and keep it going (Chau & Xu, 2012). This promotes open communication amongst employees thereby boosting their involvement and employee engagement.
Internal blog by the financial company help in fostering its culture and ensure a sense of community building. However, the employees can use blogs for promoting the upcoming events, celebrating employee milestones and also increase awareness.
The implementation of the digital communication tool can lead to improvement in the functioning of the financial sector through:
The financial institutions through digital communication tools can escape the risk of losing the customers to the competitors. This can be done through the effective use of email, web, instant messaging, social media, videoconferencing and instructional videos.
The financial institutions through the effective use of digital communication tools can also lead to more secured information by maintaining privacy, identification of theft and keeping information secured.
Conclusion
The report ends in the note light of providing necessary recommendations that will lead to improvement of the brokerage firm. Through the report one also gets to know the real execution of the communication strategies in a financial industry. These strategies however include chat rooms, discussion forums, internal blogs and instant and direct messages. There is also a mention of how these communication strategies are helping the brokerage firm under discussion. Through the report one will also get to know how timing and up to date information is necessary for a financial organization
References:
Answers to Investing & Retirement Questions | Charles Schwab. (2017). Schwab.com. Retrieved 30 November 2017, from https://www.schwab.com/public/schwab/investing/why_choose_schwab
Barron, O. E., Byard, D., & Liang, L. (2013). Analyst pessimism and forecast timing. Journal of Business Finance & Accounting, 40(5-6), 719-739.
Chang, D. S., & Wang, T. H. (2012). Consumer preferences for service recovery options after delivery delay when shopping online. Social Behavior and Personality: an international journal, 40(6), 1033-1043.
Chau, M., & Xu, J. (2012). Business intelligence in blogs: Understanding consumer interactions and communities. MIS quarterly, 36(4).
Downs, C. W., & Adrian, A. D. (2012). Assessing organizational communication: Strategic communication audits. Guilford Press
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making for personal integrity and social responsibility. New York: McGraw-Hill.
How to Invest | How to Invest Money | Charles Schwab. (2017). Schwab.com. Retrieved 30 November 2017, from https://www.schwab.com/public/schwab/investing/retirement_and_planning/how_to_invest
Investment Services: Stocks, Mutual Funds, ETFs | Charles Schwab. (2017). Schwab.com. Retrieved 30 November 2017, from https://www.schwab.com/public/schwab/investing/invest.h
Jenks, C. (2014). Social interaction in second language chat rooms. Edinburgh University Press.
Jussila, J. J., Kärkkäinen, H., & Aramo-Immonen, H. (2014). Social media utilization in business-to-business relationships of technology industry firms. Computers in Human Behavior, 30, 606-613.
Pazos, P., Chung, J. M., & Micari, M. (2013). Instant messaging as a task-support tool in information technology organizations. The Journal of Business Communication (1973), 50(1), 68-86.
Poess, M., Rabl, T., Jacobsen, H. A., & Caufield, B. (2014). TPC-DI: the first industry benchmark for data integration. Proceedings of the VLDB Endowment, 7(13), 1367-1378.
Quinn, M. J. (2014). Ethics for the information age. Pearson.
Shichor, D. (2012). The late trading and market-timing scandal of mutual funds. Crime, law and social change, 57(1), 15-32.
Treem, J. W., & Leonardi, P. M. (2013). Social media use in organizations: Exploring the affordances of visibility, editability, persistence, and association. Annals of the International Communication Association, 36(1), 143-189.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
