THE INVESTMENT ADVISORY DIVISION Academic Essay

Lauras opportunity was to start out as an associate in the Investment Advisory Division. Providing investment management advisory services to clients had always been Concords main business. The associate position had been created in order to give young, talented individuals an introduction to money management by working closely with a variety of senior investment managers. Associates were considered to be part of a resource pool that was available for work on different This document is authorized for use only in International MBA ENE-2016 by IE Business School. IE Publishing IE Business School LAURA CARPENTER CO1-248-I 3 projects as they came up. If a large pension fund, for example, requested Concord Investment to make a presentation on fixed income management, a senior manager in the Fixed Income area of Investment Advisory would select a group of Fixed Income specialists and an associate from the pool to work on the presentation. Senior managers also called on associates to assist on day-today work with existing clients, which could involve gathering research on a particular industry or providing market information. After a year or so of being in the pool, the associate had the opportunity to indicate his/her preference for where he/she would like to be placed, whether it be Fixed Income, Equities, Foreign Currency, Research, etc If this preference coincided with the firms needs, the associate moved into the desired area. After initial placement, an individual often decided that he/she would like to try another area. If he/she had developed a strong reputation, this movement was usually easy to accomplish At the present time, nearly all of the associates in the pool were recent graduates of top business schools. Investments management was generally regarded as a prestigious field and the possibility of being made a partner attracted many MBAs who were eager to earn big dollars over a period of time. Concord Investment had recruited at the top business schools for many years for the Investment Advisory Division. No MBA had ever been hired to enter any other area of the firm, including Retail Marketing. Associates were expected to work long hours in the first few years. Most associates stayed until early evening at least and were often in the office on weekends. The hours one put in were viewed with a certain degree of pride and indicated how committed one was to the firm and to getting ahead. Associates were often called upon to travel with senior managers to clients offices. Often this travel was on very short notice. You never really knew where you were going to be the next day. THE RETAIL MARKETING DEPARTMENT Retail Marketing seemed to be viewed as an amusing curiosity by the rest of Concord Investment at the Investment community. The product was portfolios of securities which were assembled and sold through a broker network to small individual investors and were subsequently not managed, but were sold on the basis of providing steady income and safety through diversification. Its very nature was in contrast to Concord Investments traditional business, which was to provide expert advisory service to very wealthy clients and institutions on managing their investment portfolios. By its design, Retail Marketing was a very profitable department for Concord Investment. Although other firms had tried to imitate the Concord Investment product, none had been successful. Most observers attributed Concord Investments success to their high quality and long-standing reputation in the investment community and access to extensive brokerage sales networks. But David Ackerman, the partner in charge of Retail Marketing, insisted that it was his genius that was responsible for the success and that he could do the same at any other firm. Only about 40 people worked in the Retail Marketing Department. Of these about 10 could be considered to be professionals, either in buying, marketing or research. The majority of the staff had been there for several years several had come to Concord Investment with David about 11 years ago when he had joined the firm. Concord Investment Co. employed close to 500 people of whom about 100 were professionals and 28 were partners. The major part of Lauras job was selecting securities for the packaged pools of securities that Concord Investment marketed. The purpose of the pools were to allow small investors to participate in the attractive yields offered to institutional investors without having to select their own individual portfolios. The product was very successful, popular with both investors and securities brokers, and very profitable for Concord Investment. In fact, during the Bad Times, it was Retail Marketing which kept Concord Investment in the black. Due to the products popularity, there was an almost constant need to accumulate more securities for the pools. Laura bought about $200 million each week. The process of buying securities This document is authorized for use only in International MBA ENE-2016 by IE Business School. IE Publishing IE B PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT

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