Innovation and Collaboration at Merrill Lynch Harvard Case Solution & Analysis


Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies. Merrill Lynch has offices in 40 countries with more than $ 1.6 trillion in assets. Merrill Lynch was incorporated in 1914 by Charles E. Merrill & Co. In 1971, Merrill Lynch publically offered a wide range of services to private customers, small businesses, and institutions and corporations. Merrill Lynch’s list is divided into two interrelated segments: Global Markets & Investment Banking and Global Wealth Management. Merrill Lynch is one of the leading suppliers in the world of institutional sales and trading, investment banking advisory and capital raising services to businesses and governments and institutions in the Global Markets and Investment Banking worldwide. Merrill Lynch is also renowned as theleading provider of wealth management products and services to individuals, together with small and medium enterprises and employee benefit plans. One of the greatest assets of Merrill Lynch competition is their customer relationship. They are growing and enriching their relationships through disciplined growth, innovation and flawless execution. Merrill Lynch has a commitment to its customers and shareholders of the company excellence, integrity and ethical behavior. All board members are independent, except the CEO. Merrill Lynch is committed to the social responsibility of companies by implementing various activities to help thecommunities.

Since its inception in 1914, the organization has evolved into one of the largestbanking firms in the world and most successful investment. The organization’s success can be attributed to the strength of its brokerage network, which has enabled the company to ensure its values directly. As a multinational company with more than $ 1.8 trillion in assets, the company has been able to increase its operations to different countries, expanding in the six continents around the world. Through its subsidiaries, Merrill Lynch offers a broad range of financial services including, but not limited to, investment banking capital market services, investment management and brokerage.

As an investment bank, among other things, Merrill Lynch provides financial advice and lends its sales network to individuals, companies and even governments around the world. Through these services, Merrill Lynch has helped business entities to keep their wealth increase, and invest wisely. As the world becomes more globalized, the company continues its path of innovation and business prominence through its long list of clients and their great influence on the global economy.

The financial services giant has engaged in all sectors of the business spectrum, succeeded through solid financial analysis and in turn, helping customers to succeed as well. Although very successful, Merrill Lynch has had its share of adverse outcomes as a result of unethical business relations of the company. The organization has been accused of civil rights violations, the irregular sale of shares and relations that are considered conflicts of interest, among other issues. However, none of these measures to net loss of $ 9.8 billion the company incurred in the fourth quarter of 2007.

There are several ways to improve the process of the company and gain an edge over the competition. One of the strengths of Merrill Lynch is that it is the market leader in many product lines and offers a wide range of investment instruments for clients. Merrill has been able to create a more localized environment by adapting its services to certain areas of business environment. Merrill Lynch produces in 20 regional areas in which it operates; these segments are also global. Finally, with the help of strong global markets, Merrill Lynch generated high revenue growth since 2003. Till December 2004, Merrill Lynch reported a revenue growth gain of 17%.

Innovation and Collaboration at Merrill Lynch Case Solution

Answer # 1:How would you describe the research department at Merrill Lynch

The new environment of Wall Street threatened the independent silo culture that dominated the trade in investment research. Brokerage firms needed to identify opportunities to create value-added products. Despite the reforms of the industry, the lower volume of operations, and reduced commission rates, the investigation continued to provide a key competitive advantage firms brokerage according to Institutional Investor. The research Management at Merrill Lynch determined that collaboration between the analyst ledto innovative products and services that are considered necessary to thrive in this climate. On the other hand, despite a limited source of energy, the use of Candace Browning of persuasion as a tool of influence was effective in moving its department of culture star to one that suits the market leaving investment research.

His position as head of Global Securities Research provides Candace Browning with legitimate power over Merrill Lynch analysts worldwide. This potential for changing attitudes and behaviors of their staff was weakened by low centrality it had in place. The financial analysts were accustomed to working independently in their areas of specialization and were more dependent on Institutional Investor ranking a department head. Classifications also increased the visibility of the star analysts Merrill Lynch and dealt another blow to the magnitude of the legitimate power of Mrs. Browning..............

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