The Investment Banking Industry Is A Global Multibillion Dollar Business

1832 Words Sep 11th, 2015 8 Pages
The investment banking industry is a global multibillion-dollar business that acts as an intermediary between the issuers of securities and investors, such as financial institutions, corporate businesses, high net worth individuals and governments. Campbell and Bailyn (C&B) is rated as one of the top five investment banks in the world. However, a significant change in the economic and regulatory environment may put their success in jeopardy. As detailed in the Issue Tree and the SWOT, issues facing the firm are: (1) Lack of leadership preparedness in anticipating and preparing for change. (2) Lack of organisation wide discourse on the urgency for change. (3) Structure and Processes not aligned towards a homogenisation of a one organisation equitable culture. (4) Individual aspirations and goals not taken into consideration when restructuring employee roles.

Analysis:

Force Field Analysis (Brown 2011) and Six-Box Model (Harrison and Shirom 1999):
A critical commonality between the models lies in the interaction of the firm with the external environment and the resultant internal pressures. C&B encouraged a highly competitive, customer focussed culture. Unanticipated events such as crash of the mortgage based securities market, change in investment patterns, and introduction of new products like ’futures and options’ resulted in an knee-jerk reaction with the with the management team introducing a new KAT structure and performance appraisal process. Thus, according to…
Open Document