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Organisations, Economic Systems and Government.
Northern Rock.
This report will identify Northern Rocks key values, its affect upon the market and the share of the market that it holds including critical analysis.
Their mission statement states “Northern Rock is a specialised lending and savings bank which aims to deliver superior value to customers and shareholders through excellent products, efficiency and growth.” (Anon, 2004, Northern Rock community report [online] 2003.)
The companies objectives encompass efficiency, growth and value for both customers and shareholders, efficiency is paramount to the Northern Rock’s business strategy. Essentially the broader range of customers the better there pricing can be because of the affects associated with economies of scale and capital efficiency is achieved through the use of debt and equity capital (capital invested). Cost efficiency is enhanced by low cost, effective distribution and enables competitive pricing. Capital efficiency is achieved by optimising the use of debt and equity capital. By growing and improving the mix of higher margin products (those products which will produce high yields) “Northern Rock aims to grow earnings and improve returns to shareholders, at the same time as providing innovative customer friendly products to our customers.” (Anon, 2004, Northern Rock community report [online] 2003.)
Northern Rock’s key values include:
They “do not knowingly transact any business with any individual business or organisation involved in any actual or potential abuse of human rights” (Anon, 2004, Northern Rock community report [online] 2003). They also aim to provide employees with a “comfortable, safe and he ...