H&R Block Case Study
H&R Block Tax Services Case-Study
Frank M. Burns
Management & Strategy 5650
Gregory Coon, Ph.D.
Spring 1 2011
Webster University
Abstract
H&R Block’s Tax Services segment provides income tax return preparation, electronic filing and other services and products related to income tax return preparation. Clients are offered a number of options for receiving their income tax refund, including a check directly from the IRS, an electronic deposit directly to their bank account, a prepaid debit card, a refund anticipation loan (RAL) or a refund anticipation check (RAC). Major revenue sources include; fees earned for tax preparation services performed at company-owned retail tax offices, royalties from franchise retail tax offices, fees for tax-related services, sales of tax preparation and other software, online tax preparation fees, RALs and RACs. The purpose of this paper is to research the impact of the recent decision the Office of Comptroller of the Currency (OCC), the Treasury Department agency that regulates national banks, made concerning the elimination of refund anticipation loans (RAL) funded by HSBC, H&R Block’s lender. We will also look at H&R Block’s new management strategy to combat their decision.
History of H&R Block
H&R Block is one of the world's largest tax services providers, utilizing more than 100,000 trained tax professionals and having prepared more than 550 million tax returns worldwide since 1955. Brothers Henry W. Bloch and Richard A. Bloch founded the company in 1955 and grew the business to become a brand and franchising icon. The Kansas City based company also offers banking, personal finance and business consulting services. Today, H&R Block operates 12,500 retail tax offices in the United States plus an additional 1,400 abroad.
Competitive Environment
There are a significant amount of tax return preparers, tax preparation firms and accounting firms that offer tax preparation services such
Frank M. Burns
Management & Strategy 5650
Gregory Coon, Ph.D.
Spring 1 2011
Webster University
Abstract
H&R Block’s Tax Services segment provides income tax return preparation, electronic filing and other services and products related to income tax return preparation. Clients are offered a number of options for receiving their income tax refund, including a check directly from the IRS, an electronic deposit directly to their bank account, a prepaid debit card, a refund anticipation loan (RAL) or a refund anticipation check (RAC). Major revenue sources include; fees earned for tax preparation services performed at company-owned retail tax offices, royalties from franchise retail tax offices, fees for tax-related services, sales of tax preparation and other software, online tax preparation fees, RALs and RACs. The purpose of this paper is to research the impact of the recent decision the Office of Comptroller of the Currency (OCC), the Treasury Department agency that regulates national banks, made concerning the elimination of refund anticipation loans (RAL) funded by HSBC, H&R Block’s lender. We will also look at H&R Block’s new management strategy to combat their decision.
History of H&R Block
H&R Block is one of the world's largest tax services providers, utilizing more than 100,000 trained tax professionals and having prepared more than 550 million tax returns worldwide since 1955. Brothers Henry W. Bloch and Richard A. Bloch founded the company in 1955 and grew the business to become a brand and franchising icon. The Kansas City based company also offers banking, personal finance and business consulting services. Today, H&R Block operates 12,500 retail tax offices in the United States plus an additional 1,400 abroad.
Competitive Environment
There are a significant amount of tax return preparers, tax preparation firms and accounting firms that offer tax preparation services such
References: HSBC Terminates Agreement to Provide RALs at Direction of OCC. (2010, December 26). The Pak Banker. Retrieved February 12, 2011, from ABI/INFORM Global. (Document ID: 2221952131). H&R Block, Inc. (1February). Hoover 's Company Records,10689. Retrieved February 12, 2011, from Hoover 's Company Records. (Document ID: 168158401). -------------------------------------------- [ 1 ]. http://investing.businessweek.com/research/stocks/news/article.asp?docKey=600-201012281126KRTRIB__BUSNEWS_21809_64800¶ms=timestamp||12/28/2010%2011:26%20AM%20ET||headline||H%26R%20Block%27s%20refund%20loans%20cut%20off%20%5BThe%20Kansas%20City%20Star%2C%20Mo.%5D||docSource||The%20McClatchy%20Company||provider||ACQUIREMEDIA||realtedsyms||%7CUS%3BHRB%7CGB%3BHSBA%7CUS%3BJTX&ticker=HRB:US [ 2 ]. http://www.google.com/hostednews/ap/article/ALeqM5jH7YKDTjbakK6KRpAREM3Y6s2Jw?docId=16d8f847807a4f8e9cc72c5c76c6231a [ 3 ]. http://www.google.com/hostednews/ap/article/ALeqM5jH7YKDTjbakK6KRpAREM3Y6s2Jw?docId=16d8f847807a4f8e9cc72c5c76c6231a