Swot Analysis of Mitsubishi Ufj Financial GroupEssay Preview: Swot Analysis of Mitsubishi Ufj Financial GroupReport this essay3.0 SWOT Analysis3.1 Strengths3.1.1 Leadership in Japanese Financial services industryMitsubishi is one of the worlds leading financial groups, with total assets of more than US$1.8 trillion as of 2008. Mitsubishi’s services include commercial banking, trust banking, credit cards, securities, asset management, consumer finance and leasing in more than 40 countries. Besides that, subsidiary the bank of Tokyo-Mitsubishi UFJ operates about 500 branches across Japan and another 80 overseas. Mitsubishi UFJ Financial Groups operating companies include BTMU, Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ Securities, all are the Japan’s largest financial service companies.
3.1.2 Largest overseas network owned by a Japanese banking companyMUS, a part of Mitsubishi UFJ Financial Group’s global network of securities broker-dealer. MUS engaged in capital markets origination transactions, collateralized financing, private placements, securities lending, domestic and foreign debt and equity securities transactions. MUS had overseas subsidiaries and affiliates in Tokyo, Hong Kong, Geneva, Singapore and London, which active in markets in America, Europe and Asia. It provided corporate and institutional clients with a complete range of securities and investment banking products and services, with a significant global presence and a strong platform for international growth.
3.1.3 Strong Strategic Alliance with major banksMUFG invest $9 billion equity and build a global alliance with Morgan Stanley which a global financial services firm and also a market leader in investment banking. Morgan Stanley gives MUFG a 21% ownership interest and becoming the U.S. bank’s biggest shareholder. This alliance relationship will provide both MUFG and Morgan Stanley with a valuable strategic partner in order to enhance their global footprints and capture financial services opportunities around the world.
3.1.4 Have over 33,000 employeesMUFG had over 33,000 employees on 200 operating bases in 80 countries worldwide. Mitsubishi create and sustain a responsive and dynamic workplace for all the employees where everyone can focus on providing outstanding customer service. Recruited the diversity of employees and foster a strong spirit of teamwork in order to achieve the highest levels of professionalism and build the long-term stakeholder relationships.
3.2 Weakness3.2.1 Limited awareness globally as compared to other big banksMUFG introduced VASCO to secure its online banking services in order to protect retail banking customers when accessing the bank’s online banking service. However, criminals of attempting steal banking customer’s user IDs and passwords through spoofing tactics had increase in Japan. This hacking was attack on financial institutions in every region of the world. Banking through mobile and online transaction was convenience to customers. However it was also consist of risk of the IDs and password being stolen.
3.2.2 Lack of presence in economies crisisDuring economics recession and falling stock markets globally, there are many Japan’s banks managed to avoid the worst of subprime mortgage market’s collapse. However, MUFG invested $9 billion equity into Morgan Stanley, the major bank in U.S. Lately, it have been hammered by the deepening global recession and the dropped in stock prices. Mitsubishi UFJ Financial Group’s profit during that year had lowered its full-year profit forecast by 77%.
3.2.3 Fluctuating marginsMUFG has witnessed fluctuating profit margins during past few years. Based on the Mitsubishi’s financial review, the operating margin of the company decreased from 8.1% in 2007 to 5.8% in 2008 and in 2009 the operating margin increased to 9.7%. However, the net profit margin of the company decreased from 8.3% in 2007 to 7.8% in2008 and in 2009 its net profit margin decreased to 6%. The companys fluctuating profit margins implies poor decision making and in efficient cost management. This trend had reduced availability of resources to pursue growth plans of the MUFG.
3.2.4 Significant amount of debtIn 2009, Mitsubishi have significant amount of debt. The total long term debt of the company increased 12% from $30,968.2 million in 2008 to $34,677.7 million in2009. Due to an increasing of the debt, the company future borrowings may not be available and insufficient to pay its obligations or to fund other liquidity needs. Therefore, it caused a negatively affect to its liquidity position and credibility in the market and also operations.
Opportunities3.3.1 Growing retail bankingMitsubishi UFJ Financial group (MUFG) is the one of the largest diversified financial services groups in world. Based on the largest customer foundation and world-wide network among Japanese financial institutions and their solid financial standing, MUFG wascontinuously enhance its’ corporate value by strengthening cooperation among Group companies through their corporate divisions in both domestic and overseas divisions. In recent development, MUFG engaged in a range of financial activities including commercial banking, trust banking, investment banking, and asset management services and securities businesses. This was provide MUFG an oopportunities in growing
mitsubishi-sales and to achieve a strong and lasting relationship with the majority’ consumers of MUFG and its members. The largest, most established and largest independent financial agency in the world is headquartered in the Tokyo–Wilshire, Japan
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2.5.1 The group comprises: Business Development, Investment and Finance, Finance, Insurance Agencies, Finance Institutions, Investment Services, and General Services. The group comprises investment, banking, corporate insurance, and securities firms, as well as international banking and insurance firms, and a general investment bank. The group includes Japan Post and ETS firms. The Group consists of three main groups, namely: the International Association of Insurance Agencies (IIIA), the European Association of Mutual Funds (EACH), and the World Trade Organization (WTO). The IIIA is the financial agency focused on a wide range of major market issues including the emerging market, large-scale debt, currency swaps, and creditworthiness/credit risk-redemption rules. The EACH serves as the international market in which various countries’ economies, including Japan, China, India, the United States, and other economies are exposed and vulnerable to high-risk risks. In its role as an independent and independent agency, the EACH also plays an active role in the management of major financial institutions. Since 2005, EACH has helped develop a comprehensive financial management system for Japanese institutions, an inter-agency framework that will improve their financial discipline, and supports the development, implementation, and dissemination of foreign financial and regulatory standards. It will also enhance the transparency and efficiency of financial regulatory oversight and ensures timely and sufficient action in the implementation of the financial rules. EACH will be the body established in January 1, 2018, by the Japan Government, and will be involved in setting up and supervising EACH and other international financial agencies.
On December 16, 2017, EACH was established in Tokyo, in preparation for their launch, and the Group issued a public announcement on its membership, which is described below.
Japan has a growing intergroup and local banking, financial management, investment, securities, and asset management sector that includes an ongoing international network.
The Group’s financial services division is located at: The Bank Corp. of America Corp in Tokyo, JP Morgan Chase Corp in New York