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Business IA
Business and Management SL IA

To what extent would PayPal splitting from EBay be positive for its future financial growth?

Masilan Manavalan (000844 0193)
March 9, 2015
Interlake High School, Bellevue, WA USA

Word Count: 1474
Contents
Introduction 3
Tools and Analysis 4
Stakeholder Mapping 4
Force Field Analysis 6
Decision Making Tree 7
Conclusion 8
Bibliography 10
Appendix 11
Document 1: 11
Document 2: 11
Document 3: 14

Introduction
PayPal is an online payments service that has been made and owned by eBay until the summer of 2013. PayPal is a highly profitable online payments service, mainly because it is not used only by eBay, but by many other online services that may require online payments. However, in the recent years the actual growth in eBay due to eBay’s online marketplace has been minimal in the company’s overall growth compared to the growth due to PayPal. PayPal’s services and overall idea have proved much more attractive than eBay’s online marketplace, which to some extent is even antiquated, thus it is highly probable that eBay’s lack of substantial growth is hindering the potential financial growth of PayPal. Adding this all up, eBay’s CEO John Donahoe decided that it would be wisest if PayPal separated from eBay into a separately owned company with a new CEO, expecting that PayPal would have much more financial growth and potential if they had more financial opportunity. Through this paper I will mainly be analyzing the past financial growth and standings of PayPal in comparison to eBay. My main sources will be Statistica, The Economist, and Fortune. Stakeholder mapping will be used to analyze specific wants of customers from PayPal in order to determine how splitting PayPal from eBay will affect those wishes and thus its customer base. I will use force field analysis in order to determine all the significant outcomes that would result if PayPal were to split with eBay, and how those would affect the company


Bibliography: Abel, J. (2014, October 6). PayPal expanding return window to six months. Consumer Affairs, pp. 2-3. Hood, J. (2014, September 9). PayPal to start accepting bitcoin. Consumer Affairs, pp. 2-4. Johnson, S. (2014, 12 12). eBay 's split with PayPal may mean thousands of layoffs. Mercury News, p. 1. Mangalindan, J. (2014, September 30). eBay CEO: Why we 're spinning off PayPal. Fortune, pp. 1-2. McClatchy. (2015, January 21). Big Break: eBay to lay off 2,400, could split into three parts . Mercury News, pp. 1-3. Report, S. (2014, May 10). The end of a monopoly. The Economist, pp. 1-4. Richter, F. (2015, January 22). PayPal drives eBay 's growth. Statistica, pp. 2-4.
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