Qudian Corporate Governance Free Samples †MyAssignmenthelp.com

Questions: 1.How the News Item Illustrate the Topic of Discussion? 2.What can be Learnt from the event? Answers: Brief Summary of the event Qudian which is a Chinese micro-finance credit provider is a company that was founded three years ago (Nikhil Subba, 2017). It has a working partnership with Alibaba Company which is a major player in mobile money payment system popular in nations that credit cards have not been put to use by many citizens and is also convenient to the youths since they can access mobile phones. According to the report by Nikhil Subba, (2017), the company provided five billion and six-hundred million dollars for over seven million clients in loans. They made their initial public offering of their stock in a quest to expand the company and offered their stock at a small cost of twenty-four dollars in America since their main target is the youths who are assumed to have little financial empowerment thus causing them to have fewer chances of accessing loans from traditional financial providers. Consequently, the strategy enabled them to earn around nine-hundred dollars in revenue (BBC News, 2017). Addit ionally, there were plans being implemented to put their shares in the New York stock exchange. 1. The news piece used is based on the initial public offering of the company stock shares in markets especially in a different region from the companys origin. The business is originally Chinese but has ventured into the United States of America. Strategic decisions are made by the enterprise in order to gain a good position in the field at an advantage over the competitors as well as retain profitable working relationships with different stakeholders. According to Alex Barinka (2017), the decision to engage in the New York stock exchange market was an intelligent strategy since the platform provided for listing of companies whereby those that emerged at the top had a bigger corporate advantage over those that are not. As such, due to the reliance of consumers as well as the investors on the information from such platforms to inform their choices in business, once a business is listed at the top of such lists they are more likely to experience a rise in their profits since more people have confidence in them. Business China article insists that after the announcement of the listing on the market, there was a huge increase in the percentage of growth of the company shares from thirty-two percent to forty-eight percent within a few hours. According to their report, Asian companies have an upward trend of trading in the United States of America which boosts their businesses. According to Emma Lee (2017), Qudian has been able to build a customer base that propelled it to the position it is enjoying now due to venturing in a field that is perceived as risky by most of the financial providers around the globe. Apparently, they recognized a gap in the money lending business where students and other individuals who lack proper collateral were not viable for loan programs. Consequently, they established a method of identifying credit-worthiness on online platforms based on the spending habits as well as using other means. As such, the relationship and confidence they inspire to their loyal customers are unmatched which is a strategic corporate tool to stand at an advantage over competitors. 2. Investor room News article(2017) insist that Qudian Company gained the customer base it enjoyed due to engagement in the consumer loans which are less than corporate borrowing due to their different nature. Additionally, the process is simplified such that people can borrow from where they are as long as they have access to a mobile phone and verification of credit worth consumers are also conducted within a short duration and the feedback is offered equally fast. However, launching Initial Public Offering has changed the situation of the company in such a manner that due to the global attention that is given to companies at this stage, they enjoy global clientele especially since they are trading within a platform as large as New York Stocks Exchange. What Might Happen Next According to Emma Lee (2017), some media houses have launched concerns since the IPO about the legitimacy of the business due to challenges faced in the past such as suspension on basis of uncontrolled rates and threats of online money scams. As such, the company ought to clear the misunderstanding since such claims if not solved would negatively affect the brand. In cases where the rates applied are not in compliance with the regulations, the same should be corrected. Linkages to other Topics International Strategy Trading in an international platform such as New York Stock Exchange assists the company to compete with other companies at the global level. Corporate Strategy Launching Initial Public Offering has an impact such that company shares are open for purchase by the public as well as other corporate bodies thus distributing risks as well as gaining revenue from the purchases. Bibliography Alex Barinka, 2017 Derived from: https://www.bloomberg.com/news/articles/2017-10-17/chinese-consumer-lender-qudian-raises-9000-million-in-u-s-ipo BBC News, 2017 https://www.bbc.com/news/business-41662048 Emma Lee, 2017 Derived from: technode.com/2017/10/23/chinese-micro-lender-qudian-under-fire-after-splashy-us-ipo/ Investor Room, 2017 Adopted from: Stage.investorroom.com/qudian/company-overview Jane Li, 2017 derived from: m.scmp.com/business/china-business/article/2115971/ant-financial-backed-online-lender-qudian-surges-nyse-debut Nikhil Subba, 2017 Derived from: https://www.reuters.com/article/us-qudian-ipo-pricing/qudian-raises-900-mln-in-biggest-u-s-listing-by-a-chinese-fintech-firm-idUSKBN1CM3BD