DA ple (DA) is an information solutions company, listed on the Loodon Stock Exchange. DA began trading in 1980, providing credit reference services for business customers. Although this remains its primary activity, it has grown organically and now provides financial and statistical information to a variety of UK businesses to help them manage the risk of commercial and financial decisions. The company is split into three divisions: Credit refer provides factual information to chiz services - via credit searches of an individual's credit history, to assist the lend protitably or offer trade credit. Decision software - assists clients in improving consistency and quality of business decisions in areas such as credit risk, prevention and cusfomer account management. - Vehicle history - provides financial and statistical inform to the autoenotive industry to belp clients undertand the associated with the purchase or sale of a particular second-hand vehicle A breakdown of key data by division for 2007 is as follows: Credit reference services Clients for credit reference services can be split into two groups: I Banks, credit card companies and other financial services organisations which need help assessing the risk associated with lending decisions. 2 Commercial companies secking credit references before supplying goods on credit to other businesses and private customers. When an individual or business makes an application for credit, the lender or supplier usually asks a credit reference agency (CR.A) for a credit search to check the applicant's identity and creditworthiness. The database system operated by a CRA enables different lenders, such as banks, to share information about their customers' credul accounts and repayment histories. Applicants have to give permission for their credit report information to be shared when they apply for credit. Although a number of companies are currently licensed CRAs in the UK, DA is the largest, with a 58% market share. DA has built its market position by compiling and mantging the most comprebensive credit database in the UK. Commanication and information technology are a core part of DA's business. Online systems allow lenders to update data directly, resalting in more accurate information and efficiency gains for DA. DA's main competitor CC lnc. (CC) is an American bused business with an acknowledged expertise in credit scoring (a statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness). CC has recently announced that, as part of its global expansion strategy, it plans to increase its share of the UK credit market, which is currently 32%.CC intends to use low-cost web-based systems to deliver online consumer credit scores directly to lenders and companies extending trade credit. In this way, it bopes to reduce DA's market dominance in the UK. DA's strategic development Decision software Having created a reputation for holding the most comprehensive credit database in the UK. DA went on to develop analytical software to enable clients to process credit applications and manage customer credir accounts more efticiently. The software takes data from DA's credit management database and other sources, such as the client's own customer account information, and uses analytical tools and scoring systems to provide decision support. Typical users of this product are banks, credit cand companies, mortgage providers and other organisations that grant persoetal of trade credit. DA's software enables them to assess quickly and accurately whether to accept a new customer of to extend credit arrangements for existing customers. It can also define the processes the businesses should adopt in managing an account that has fallen into arrears. Vechiclehistory Recognizing that it had a core skill in the management of large databases for the financial services industry, DA also decided to provide similar services to the automotive industry. It compiles and manages data on the histories of 30 milison vehicles and 25 million car insurance policies in the UK. This data is used to provide vehicle history information to car dealers, finance providers and insurers. Fraudulent representation of used vehicles is a significant risk to private consumers and a potential financial liabelity for the businesses involved in the sale or purchase. The vehicle history can assist in establishing the market value of a vehicle; and whether a vehicle is registered as stolen of has outstanding finance. Prumond dismifoztion servioe: Checksta. CRA In wetum foe a sentitory fee of E2, the CRA is legally obliged wo provide a writen copy of the information held on the individaal's credin oeport lasizad of making a written application for a statulecy The Checksta servise will allow individuals 10 check enlise that their crodit repon is ascuate and up-totate, as maty times as they wam. Chockata will send a text ef erail alort every time there is a significant Hentity fraud (where semecee apples for oxdin in another persed's namel. Infivitials will alwe be able to the information, if they were wapply fue cradit. The introdaction of Checkta is perity in scoponue to the aqpressive marketing stanse curratly being Chargieg athodes ai money and credt. An increase in spending has le by weleptone and online. This necens that individuals are moes likelly 10 shop arount for credit and lendars lave ta cary out more checks Churges in loginlabion, DA has 10 cenform wo the UK law that geretn the way it does busieess, Gevernment concems that dete levels are 100 bight have cated a tightenitg of the legillation wo give totaument bette acces to informutica held en them, more rights regardizg dispetes witl lenders and more pectection from wegle heders. As a revelt, CRAs hay with convumer efpeisatioss to help censumers to understand how cred refertencing works sperading of DA's ieformation tecthontory syzems. information and use these details to commit crimes, uswally obtainire credit illekally. Markating concmer market, DA will seed to use a different marketing strategy for Checkes DA itends to use its knewledge of coneumars who have applied for their sestatory credit mports in the pust, that those most likely are poople who are imemet aens, crodn users and those keco no manage their financiat wetrites. Itequired (a) Explaia the fuctors that may have ceatributed to DA's competisive advantage. (10) marks) (i1) Prepare a PESTEL analyib on the eredit reference indesery, diearly esplainieg the inglications fer DA's plans to implement the Checksta product. (10 marks) DA ple (DA) is an information solutions company, listed on the Loodon Stock Exchange. DA began trading in 1980, providing credit reference services for business customers. Although this remains its primary activity, it has grown organically and now provides financial and statistical information to a variety of UK businesses to help them manage the risk of commercial and financial decisions. The company is split into three divisions: Credit refer provides factual information to chiz services - via credit searches of an individual's credit history, to assist the lend protitably or offer trade credit. Decision software - assists clients in improving consistency and quality of business decisions in areas such as credit risk, prevention and cusfomer account management. - Vehicle history - provides financial and statistical inform to the autoenotive industry to belp clients undertand the associated with the purchase or sale of a particular second-hand vehicle A breakdown of key data by division for 2007 is as follows: Credit reference services Clients for credit reference services can be split into two groups: I Banks, credit card companies and other financial services organisations which need help assessing the risk associated with lending decisions. 2 Commercial companies secking credit references before supplying goods on credit to other businesses and private customers. When an individual or business makes an application for credit, the lender or supplier usually asks a credit reference agency (CR.A) for a credit search to check the applicant's identity and creditworthiness. The database system operated by a CRA enables different lenders, such as banks, to share information about their customers' credul accounts and repayment histories. Applicants have to give permission for their credit report information to be shared when they apply for credit. Although a number of companies are currently licensed CRAs in the UK, DA is the largest, with a 58% market share. DA has built its market position by compiling and mantging the most comprebensive credit database in the UK. Commanication and information technology are a core part of DA's business. Online systems allow lenders to update data directly, resalting in more accurate information and efficiency gains for DA. DA's main competitor CC lnc. (CC) is an American bused business with an acknowledged expertise in credit scoring (a statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness). CC has recently announced that, as part of its global expansion strategy, it plans to increase its share of the UK credit market, which is currently 32%.CC intends to use low-cost web-based systems to deliver online consumer credit scores directly to lenders and companies extending trade credit. In this way, it bopes to reduce DA's market dominance in the UK. DA's strategic development Decision software Having created a reputation for holding the most comprehensive credit database in the UK. DA went on to develop analytical software to enable clients to process credit applications and manage customer credir accounts more efticiently. The software takes data from DA's credit management database and other sources, such as the client's own customer account information, and uses analytical tools and scoring systems to provide decision support. Typical users of this product are banks, credit cand companies, mortgage providers and other organisations that grant persoetal of trade credit. DA's software enables them to assess quickly and accurately whether to accept a new customer of to extend credit arrangements for existing customers. It can also define the processes the businesses should adopt in managing an account that has fallen into arrears. Vechiclehistory Recognizing that it had a core skill in the management of large databases for the financial services industry, DA also decided to provide similar services to the automotive industry. It compiles and manages data on the histories of 30 milison vehicles and 25 million car insurance policies in the UK. This data is used to provide vehicle history information to car dealers, finance providers and insurers. Fraudulent representation of used vehicles is a significant risk to private consumers and a potential financial liabelity for the businesses involved in the sale or purchase. The vehicle history can assist in establishing the market value of a vehicle; and whether a vehicle is registered as stolen of has outstanding finance. Prumond dismifoztion servioe: Checksta. CRA In wetum foe a sentitory fee of E2, the CRA is legally obliged wo provide a writen copy of the information held on the individaal's credin oeport lasizad of making a written application for a statulecy The Checksta servise will allow individuals 10 check enlise that their crodit repon is ascuate and up-totate, as maty times as they wam. Chockata will send a text ef erail alort every time there is a significant Hentity fraud (where semecee apples for oxdin in another persed's namel. Infivitials will alwe be able to the information, if they were wapply fue cradit. The introdaction of Checkta is perity in scoponue to the aqpressive marketing stanse curratly being Chargieg athodes ai money and credt. An increase in spending has le by weleptone and online. This necens that individuals are moes likelly 10 shop arount for credit and lendars lave ta cary out more checks Churges in loginlabion, DA has 10 cenform wo the UK law that geretn the way it does busieess, Gevernment concems that dete levels are 100 bight have cated a tightenitg of the legillation wo give totaument bette acces to informutica held en them, more rights regardizg dispetes witl lenders and more pectection from wegle heders. As a revelt, CRAs hay with convumer efpeisatioss to help censumers to understand how cred refertencing works sperading of DA's ieformation tecthontory syzems. information and use these details to commit crimes, uswally obtainire credit illekally. Markating concmer market, DA will seed to use a different marketing strategy for Checkes DA itends to use its knewledge of coneumars who have applied for their sestatory credit mports in the pust, that those most likely are poople who are imemet aens, crodn users and those keco no manage their financiat wetrites. Itequired (a) Explaia the fuctors that may have ceatributed to DA's competisive advantage. (10) marks) (i1) Prepare a PESTEL analyib on the eredit reference indesery, diearly esplainieg the inglications fer DA's plans to implement the Checksta product. (10 marks)