REUTERS: AN OVERVIEW

Group Members: B. Ganes Kesari Iti Gupta NLN Swaroop Nitin Gupta Premjit Chaterjee
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Information for financial services, media and corporate markets Global Information Company

Worlds largest international multimedia news agency

Reuters

90% of revenue from financial services business

Providing solutions to 4,27,000 financial professionals Faculty of Management StudiesManagement of Services

Specially designed Tools for managing risk

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Strengths
World over known as the top most in journalism and financial data services. Pioneered dissemination of financial news. Customers focused with a better sales and support team. Different screen packages provide greater flexibility compared to its competitors. Huge network of screens and global footprint. It is in a financially recovering cycle. Stock prices are recovering. Glocer, the CEO since 2001 has helped steer the company out of severe crisis

Weaknesses
Have very few products in its portfolio. Lesser revenues per data terminal. Lack of a design which caters to the demand of economies such as India. The employees are very edgy because of restructuring and mass lay-offs.

Opportunities
The news channel can be utilized for the purpose of increasing the foot print even more. The emergence of new economies has given a further incentive to increasing the footprint. Quick shutdown of loss making ventures and noncore businesses to ensure that Reuters does not go into the RED. Improved product positioning can win some of the top financial clients from other competitors.

Threats
Privately held competitor Bloomberg has grabbed market share from Reuters. FOREX trading revenues have gone down due to formation of EBS consortium. Increasing commoditization of 24 hour news channel. Overdependence on financial clients. A majority of revenue comes from financial data business.

What is PEST..?? PEST is an Analysis that brings out the fallouts and the implications of all the various factors mentioned below:
Political

Economic

Social

Technical 2/11/2014 Faculty of Management StudiesManagement of Services

Post war over, greater political stability will lead to increase in volume of trades. Will lead to a Demand for Terminals.

Political situation may also become unstable with terrorism being the order of the day could have a serious impact on the financial markets.
Presidential elections in USA may make US markets uncertain. unforeseen movements could impair the growth prospects.

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Living in the past is a folly and hence leaving the legacy behind: e.g. moving out Fleet Street home occupied since 1939. As the global market is becoming more and more competitive with the onset of another company, Thomson Financial, the focus is shifting on increasing revenue per terminal. Simplifying the product line by cutting the number of offerings from 1300 to 50.

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Faculty of Management StudiesManagement of Services

Today societal impact of a company is also important and hence the emphasis on the creation of the Reuters foundation to support journalists from developing countries. Reinvigorate culture and behavior as one of the parts of the Fast Forward Plan initiated in 2003. Cost Cutting with a view to reducing costs that would otherwise have to be borne by society.

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Embracing technology with a view to merging operations and cutting down on staff thereby saving $ 1.6 Billion. Using technological tools to generate a shift to Total Customer Satisfaction. Technology is everyones game, thus it may be difficult to maintain a competitive edge just by relying on the technological factors alone.

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EXTERNAL FACTOR EVALUATION

Factor Weightage Ranking Weighted Ranking

Governmental Policies
State of Economy Changing Market Behavior Diversification of Areas Competitors

0.1
0.1 0.2 0.075 0.2

1
3 2 -1 4

0.1
0.3 0.4 -0.075 0.8

Preference of customers
Emergency situation, War, bankruptcy etc Social obligations New Entrants to market Technology

0.1
0.1

-1
-2

-0.1
-0.2

0.025 0.05 0.05

-3 2 1

-0.075 0.1 0.05

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1.3

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Faculty of Management StudiesManagement of Services