The commercial banking business unit of U. It has a well-diversified portfolio of financial services, which helps the business and individuals in meeting their financial needs.
The bank also wants to reduce the risk of outstanding or existing loan portfolio. The strategy of Redhook is to compete with the well-known beer brands from Europe and Canada by producing high quality beers and targeting the import drinkers.
Same goes with its returns on assets and the returns on equity. Changes in the interest rate can also change the current projected statements of the company. In addition to that, the investor services group provides the trust, asset management, insurance and brokerage services, and the leasing group finances equipment for the businesses by its 35 sales offices.
The Redhook Ale Brewery was founded in by Paul Shipman and Gordon Bowker, with a strategy to produce and sell fresh, locally made beers in the European tradition.
This has helped the bank achieve a growth in its dividend per share.
These declines are due to high taxes and health issues reducing the consumption Harvard case u s bank of washington Alcohol in the market.
The return on equity of the bank is also 15, which is almost double than all other banks. The strategy of the bank is to build a relationship with the local businesses and providing the full range of services to the credit customers.
Currently, Bancorp is in a healthy condition and is performing much better than the other banks in the industry. What appears to be the Bank Strategy? The bank has adequate reserves and has improved the quality of its loan portfolio significantly in the past few years.
The projections of David Mickelson after the expansion of the company look attractive as the sales in will increase from 2. Through the loan the bank also wants to improve the revenues and the cash flow streams and that the loan fits within U.
The five Cs of credit are: The main source of capital for the Bancorp is its retained earnings, which are also improving with its sound performance. The lender will form a subjective opinion as to whether or not the company is trustworthy to repay the loan or generate a return on funds invested in the company.
Analysis of Loan Application: Five Cs is a method used by lenders to determine the credit worthiness of the potential borrowers. Bancorp has many groups operating under it, which provide many different services. Redhook has paid and made all the payments to bank in a timely manner………………………. However, the bank also wants to increase the quality of the assets and is reluctant to fund the high risk projects, but the growth of Redhook and its past performance show that the company will be able to return the principal and interest payments on time like it has before.
Bank of Washington Case Solution Redhook has an impressive record in operating the business. This is just a sample partial work. The cost projected to remain stable with the gross margins looks flawed because of the internal and external factors. Please place the order on the website to get your own originally done case solution.
It is continuously achieving its targets under these categories. The character of Redhook is in line and it has a good relationship with the bank and has paid all the loans before on time and also exceeded the financial projections in the past.
The company is targeting to compete with regional breweries, niche microbrewers and contract brewers. The expansion plan of Redhook is very attractive, however the plan assumptions taken by the Mickelson may be overvalued and the company might not be able to perform in a way it is projected. However, the ratios are less than 1, indicating the weak liquidity position of the company.
Bank of Washington, is the largest financial services company of the Pacific Northwest. The short term liquidity ratios of the company are volatile, with increases and decreases in different years. The competitors of Redhook have vast experience and making the beer products for longer than Redhook as it might be difficult for Redhook to increase its market share and replace the imported drinker with the local lager.
Please place the order on the website to get your own originally done case solution Related Case Solutions: How well is Red hook performing?
The above 1 current ratio in the previous year indicates high inventory levels of the company, which must be reduced significantly.Abstract:In JuneMartha Johnson was selected to lead the U.S.
General Services Administration (GSA), a federal agency headquartered in Washington. A vice president of U.S. Bank of Washington, a subsidiary of U.S. Bancorp, is asked to review a $ million loan application to the Redhook Ale Brewery, a Seattle-based microbrewery. The case provides an understanding of the U.S.
commercial banking sector and the role of a loan officer, and asks students to evaluate a proposed loan. The U.S Bank of Washington was the fourth largest commercial bank of Washington in with 14% of the banking deposits market share.
As compared to the U.S commercial bank industry, the position of the U.S Bancorp is healthy with the net income of the year of $ million, which increased by 22% from $ million in U.S. Bank is proud to partner with the following colleges and universities.
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Mason, Elizabeth R. Lawrence Source: Harvard Business School 23 pages. Publication Date: D. Last month, a handful of Harvard Law School students (pictured in Ames Courtroom at Harvard) headed to Washington, D.C., to work on cases bound for the U.S. Supreme Court. Eden Schiffmann (front left) worked with Caitlin Halpern (right) on a bank-fraud case.Download