...Case Study MERRILL LYNCH IN JAPAN Case Fact 1980 Merril Lynch memulai bisnis private client dan menjadi perusahaan asing pertama yang masuk ke pasar investasi klien jepang. 1997-1998 terjadi perubahan regulasi di Jepang, yaitu relaksasi kontrol devisa dan reksa dana. Melakukan joint venture (aliansi) dengan Sanwa Bank untuk menjual produk reksa dana kepada konsumen melalui 400 cabang yang dimiliki Sanwa. Terjadi kebangkrutan perusahaan Yamaichi securities yang menjadikan Merril pada tahun 1997 mengambil alih dan memperoleh 33 kantor cabang yang dimiliki Yamaichi Problem Krisis pada tahun 2001-2002 menjadi faktor utama pertimbangan Merril Lynch apakah harus tetap melanjutkan usaha bisnisnya dan memasuki pasar private klien di Jepang. Recommendation Sebaiknya Merril Lynch melanjutkan kembali bisnisnya di Jepang, faktor krisis yang terjadi pada tahun 2001-2002 adalah faktor dari ekonomi makro yang tak bisa dikendalikan dan dihindari, namun dapat disiasati penanggulangannya dengan melakukan PHK dan penutupan lokasi ritel guna mengurangi beban biaya yang dimiliki, penutupan tersebut tentunya tidak berpengaruh pada kepemilikan asset karena semua asset dikuasai oleh perusahaan Induk. Hal yang paling mendasar mengenai pertimbangan bagi Merril untuk melanjutkan bisnis dan kembali memasuki private klien adalah karena adanya pembaharuan regulasi bisnis di Jepang yang telah membuat keuntungan bagi investor asing dalam melakukan bisnisnya...
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...In this case study, we examine Merrill Lynch, a U.S. based financial service institution that is the third largest mergers and acquisitions adviser behind Morgan Stanley and Goldman Sachs. The company serves clients in more than 150 countries worldwide. In this particular case study, we observe Merrill Lynch and its struggle to dominate the Japanese market. Being the first foreign firm to enter Japan’s private client investment market, Merrill Lynch was met with limited success. The company was met with many challenges trying to reside in Japan. A legal and cultural challenge that the company was faced with was Japan’s inability to regulate its economy. Therefore, Japan’s government made it difficult for the company to offer the wide variety of services offered in the United States and even more difficult were four competing stock brokerages that monopolized the Japanese market. These stock brokerages made it difficult for Merrill Lynch to appeal employee talent and customers away from them. Foreign exchange regulations also made it difficult to sell non-Japanese stocks, bonds, and mutual funds to investors. Ethically, Merrill Lynch was challenged to go against the Japanese government in fear of damaging future chances of conquering, or even reentering, the market. Ultimately, Merrill Lynch pulled out of the private client market in Japan and closed its six retail branches. Japan’s government also played a role in Merrill Lynch’s failure in the private client market because...
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...Merrill Lynch in Japan Sheila Kennedy MGT/448 Gary Solomon April 4, 2011 Merrill Lynch’s first endeavor to penetrate the market of Japan was unsuccessful because their marketplace was not synchronized to acknowledge international companies. However, in 1997 the situation changed in the World Trade Organization (WTO) contract for enhancing overseas firms to promote financial services to national investors. This was the beginning of a new age in the global market. Previous experience made investors hesitate to come into the Japanese market, but also made it abundantly clear that effects have changed with a enormous amount of assets and an open market owned by households in Japan were too attractive of opportunity to pass up. Merrill Lynch’s timing was perfect because there were only a few other foreign competitors with preceding experience in confidential consumer market, which made the transition more accommodating. In 1997 when Yamaichi Securities obtain bankruptcy, was an ideal opportunity for a company from American to enter Japanese market. Although first considering a joint endeavor this would permit the minimum expenditure as developing an ability to utilize an accessible distribution structure of a well-known bank of Japan. The flipside they did not observe their existence on the market because this ventures in the extensive flow, therefore Merrill Lynch began reconsidering the agreement and were fortunate to hire employees and buy branch offices of Yamaichi's...
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...were considered. "The investment banking industry has changed as a result of the financial crisis," said Global Finance publisher Joseph D. Giarraputo. "The best institutions are those that have a business model focused on customer needs." For editorial information please contact: Dan Keeler, Editor, email: dan@gfmag.com GLOBAL AWARDS | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | Best Up-and-Comer | QInvest | Most Creative | Bank of America Merrill Lynch | SECTORS | Consumer | Credit Suisse | Financial Institutions | Bank of America Merrill Lynch | Health Care | J.P. Morgan | Infrastructure | Scotia Capital | Industrial/Chemicals | J.P. Morgan | Media/Entertainment | J.P. Morgan | Metals & Mining | BMO Capital Markets | Oil & Gas | Bank of America Merrill Lynch | Power | Morgan Stanley | Real Estate | J.P. Morgan | Technology | Credit Suisse | Telecom | J.P. Morgan | REGIONAL AWARDS | NORTH AMERICA | | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | WESTERN EUROPE | |...
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...The Bank of America - Capital Structure GB 550-01 Financial Management TABLE OF CONTENTS The Bank of America Abstract I. Introduction History of the Bank of America A. Corporate Structure B. Bank Ranking C. Impact from Recession II. Financial Markets A. Domestic Markets B. Global Markets C. Mergers and Acquisitions III. Capital Structure A. Growth Opportunities B. Business Risks C. Tax Position IV. Conclusion V. Summary VI. References Abstract This paper explores the turmoil the banking industry has faced during this current economic recession focusing primarily on the Bank of America, the role they played during the recession and their focus to conquer the global market to become the largest financial institution in the world. The Bank of America is operating in over 150 countries with over 6,000 retail banking offices and over 18,000 ATMs in the United States. During this recession, the Bank of America’s ranking fell considerable and were forced to lay off over 100,000 employees. The Bank of America operates offices in more than 20 global countries including Asia, Europe, the Middle East, Africa, Latin America and Canada. A critical move for the Bank of America is investing their attention to the growth of their overseas operations. Currently, the Bank of America owns a minority stake in China Construction Bank. The Bank’s interest in growing overseas is motivated by opportunities...
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...Hill 7e End of Part Case Notes Part One: Globalization There are no Part One cases. Part Two: National Differences in Political Economy; Differences in Culture; Ethics in International Business Nike: The Sweatshop Debate 1. Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Answer: Most students will probably agree that Nike should be held responsible for the working conditions in foreign factories where subcontractors make products the company sells. Students taking this perspective are likely to argue that since the workers are there to produce the products for Nike, the fact that the company does not actually own the facilities is immaterial – Nike is the beneficiary of the work done in the factory. Some students may suggest that Nike be resolved of some responsibility if the factories also produce products for other companies. 2. What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country or those prevailing in the United States? Answer: The question of whether of whether to hold foreign factories to the same standards as domestic factories is difficult. Some students might argue that Nike should require all factories regardless of their location to maintain the same standards when it comes to working conditions, overtime, and so on. Other students however, may suggest that...
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...GLOBAL M&A MARKET REVIEW FINANCIAL RANKINGS 1H 2014 1H 2014 GLOBAL M&A FINANCIAL ADVISORY RANKINGS CONTENTS 1. Introduction 2. Global Market Commentary 8. Global M&A Activity by Region 9. Global M&A Activity by Industry 10. Global Announced Deals 11. Cross Border Announced Deals 12. Global Private Equity Announced Deals 13. North America Announced Deals 17. Latin America Announced Deals 19. EMEA Announced Deals 30. APAC Announced Deals 38. Disclaimer The Bloomberg M&A Advisory League Tables are the definitive publication of M&A advisory rankings. The tables represent the top financial and legal advisors across a broad array of deal types, regions, and industry sectors. The rankings data is comprised of mergers, acquisitions, divestitures, spin-offs, debt-for-equityswaps, joint ventures, private placements of common equity and convertible securities, and the cash injection component of recapitalization according to Bloomberg standards. Bloomberg M&A delivers real-time coverage of the M&A market from nine countries around the world. We provide a global perspective and local insight into unique deal structures in various markets through a network of over 800 financial and legal advisory firms, ensuring an accurate reflection of key market trends. Our quarterly league table rankings are a leading benchmark for legal and financial advisory performance, and our Bloomberg Brief newsletter provides summary highlights of weekly M&A activity and top deal trends. Visit {NI LEAG...
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...In modern world, financial crisis at world level can be traced back to 1920’s, when economic depression of 1929 occurred. It is said that history repeats itself. Today’s world financial crisis which started with mortgage crisis is only one aspect of history. Crisis began with sub-prime lending crisis and whole financial system was engulfed. Sub-prime crisis refers to the crisis faced by the mortgage companies that were in loaning business that due to adverse situations ran in trouble. As a result the number of defaulters increased resulting in huge bad debts for the mortgagee companies. Several of world’s best managed financial institutions went bankrupt and rests are dying for bail out. The world demand cycle is heading south and its impact is visible in world petroleum prices and auto manufacturer’s recent outcry for bailout. The liquidity is engulfing the whole world and taking the shape of financial famine. In the period of strong global growth growing capital flow and prolonged stability market participant sought higher output without an adequate calculation of the risks and failed to exercise proper due diligence. Weak underwriting standards, unsound risk management practices increasingly complex and opaque financial products and consequent excessive leverage combined to create vulnerabilities in the system. At the same time what looked as brisk-effervescence is financial market ended up in becoming alarm ringer for a greater catastrophe in the coming years....
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...Taking Wal-Mart Global Lessons From Retailing's Giant Vijay Govindarajan and Anil K. Gupta [pic] During 1992-93, Wal-Mart agreed to sell low-priced products to two Japanese retailers, Ito-Yokado and Yaohan, that would market these products in Japan, Singapore, Hong Kong, Malaysia, Thailand, Indonesia and the Philippines. Then, in 1994, Wal-Mart entered Hong Kong through a joint venture with the C.P. Pokphand Company, a Thailand-based conglomerate, to open three Value Club membership discount stores in Hong Kong. MODE OF ENTRY Once Wal-Mart had selected the country or countries to enter, it needed to determine the appropriate mode of entry. Every company making this move faces an array of choices: It can acquire an existing player, build an alliance with an existing player or start greenfield operations, either alone or in partnership with another player. Wal-Mart entered Canada through an acquisition. This was a logical move for three reasons. First, Canada is a mature market - an unattractive situation for greenfield operations, since adding new stores (i.e., new capacity) will only intensify an already high degree of local competition. Second, because there are significant income and cultural similarities between the United States and Canadian markets, Wal-Mart faced relatively little need for new learning. Thus, entering through a strategic alliance was unnecessary. Third, a poorly performing player, Woolco, was available for purchase at an economical price. Furthermore...
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...One is providing how to choose new employees and the second one is how to train for employees. I guarantee the following things are real Korean appearances now. Millennial Generation !? Hire like this ! I dreamed I could do significant projects perfectly and quickly in comfortable workplace when I get started my first job after graduation. As everyone knows, the high expectation comes great the disappointment. The companies should not leave as it is. They need to show reality of work environment to new employees. The young have a completely different set of values and expectations. If the companies do leave them, new employees would be frustrated and ready to leave their company. Here is an example. Asante, pests control company in Japan, was having difficult time due to about 40 % turnover of new employees by reason of 3D job. The best way is needed for retaining. At the end of worries, new employees were made to burst their bubble prior to stating. The recruit orientation, called ‘Attention to reality in Asante’, was held, where a few second year superior talked about...
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...Cell Phones and Globalization | By The Globalist The spread of cell phones has ushered in a new age of convenience for billions of people around the world. Developing countries, in particular, are benefiting from a wireless revolution that is connecting people in far-flung towns and villages — many for the first time. | | How many cell phones are there in the world today? Around the world, there are more than 2.4 billion cell phone users — and more than 1,000 new customers are added every minute (as of July 2006). (Washington Post) | Text messaging generated $49.4 billion in revenues for cell phone companies worldwide in 2005 — and is expected to yield $76.5 billion by 2010. (Pyramid Research) | | | What is the outlook? By the end of 2007, there are projected to be three billion mobile phone subscribers. (Nokia) What is remarkable about the mobile phone phenomenon? With 59% of users in developing countries, cell phones are the first telecommunications technology in history to have more users there than in the developed world. (Washington Post) What do people in the developing world stand to gain economically? An extra ten mobile phones per 100 people in a typical developing country leads to an additional 0.44 percentage points of growth in GDP per person. (London Business School) How quickly did cell phones take off? Back in 1980, the number of cell phones in the world was a mere 11.2 million — or just two cell phones per 1,000 people. (Federal...
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...The Core Competence Abstract:The China’s productivity will catch up with America, according to the McKinsey & Company, which is devoted to the consulting service. The result of the survey indicated that Chinese manufacturing productivity is higher one fifth than the main European countries, mostly approaching to America currently. Keywords: Core Competence, Reform and Opening, Economics For some transnational enterprises aimed at lower costs and moved the most manufacturing operation to China, it’s provided that there is significance. Before this, many experts considered that the Chinese enterprises’ productivity was lower than other countries. McKinsey found that Chinese enterprises are better at adopting the advanced technologies instead. For example, in correcting their shortcomings and adapting the consumer’s demands aspects, the Chinese labors’ flexibility and passion will play a role. However, because of the small sapling survey for only 20 enterprises from McKinsey, this result might cause the controversy. And Professor Daudi said that this small sapling survey stood up to elaborate. Accepting this statement, the analysis result for England was much worse. McKinsey summarized that the Chinese total productivity factors were 31% higher than England. And the productivity in China was only 8% lower than America. And he also said that Chinese enterprises didn’t only depend on the most advanced technologies, but improve the productivity by the perfect staff works. ...
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...Get the inside scoop on investment banking careers in the Asia Pacific region! Read this extended excerpt of the all-new Vault Career Guide to Investment Banking, Asia Pacific Edition and get the inside story on investment banking careers, including: • An inside look at corporate finance, sales & trading, research and other major functions at investment banks. • An oveview of equity and debt markets in the region • A discussion of industry trends and corporate culture in Asia Pacific • Days in the life of investment bankers in Asia Pacific This PDF is an excerpted version of the full 198-page guide To get the complete guide: • Purchase your own print or e-Book version of the guide. Go to www.Vault.com/Asia. • More than 900 universities and MBA programs worldwide subscribe to the Vault Online Library, providing more than 4.5 million students worldwide with access to Vault's guides and career information. Contact your career center today to ask about access to the Vault Online Career Library. ABOUT VAULT Founded in 1996, Vault is the leading global media company focused on careers. With offices in North America, Europe, India and Asia, Vault provides graduates and young professionals worldwide with insider information on careers and education through its award-winning web sites and career guides. CAR E E RS VAU LT CA R E E R G U I D E TO INVESTMENT BAN KING A S I A P A C I F I C E D I T I O N INVESTMENT BANKING JUNG B. LEE, TOM LOTT and the staff of vault ...
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...Get the inside scoop on investment banking careers in the Asia Pacific region! Read this extended excerpt of the all-new Vault Career Guide to Investment Banking, Asia Pacific Edition and get the inside story on investment banking careers, including: • An inside look at corporate finance, sales & trading, research and other major functions at investment banks. • An oveview of equity and debt markets in the region • A discussion of industry trends and corporate culture in Asia Pacific • Days in the life of investment bankers in Asia Pacific This PDF is an excerpted version of the full 198-page guide To get the complete guide: • Purchase your own print or e-Book version of the guide. Go to www.Vault.com/Asia. • More than 900 universities and MBA programs worldwide subscribe to the Vault Online Library, providing more than 4.5 million students worldwide with access to Vault's guides and career information. Contact your career center today to ask about access to the Vault Online Career Library. ABOUT VAULT Founded in 1996, Vault is the leading global media company focused on careers. With offices in North America, Europe, India and Asia, Vault provides graduates and young professionals worldwide with insider information on careers and education through its award-winning web sites and career guides. CAR E E RS VAU LT CA R E E R G U I D E TO INVESTMENT BAN KING A S I A P A C I F I C E D I T I O N INVESTMENT BANKING JUNG B. LEE, TOM LOTT ...
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...Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 NOKIA – It’s tough being #1 HAAS SCHOOL OF B USINESS, UC B ERKELEY M ARKETING FOR HIGH TECH ENTREPRENEURS FALL 2001 ANDREW ISAACS Prepared by: Jill Alvidrez, Peimin Chi, Nipul Chokshi Sarang Dalal, Steve Sinha, Rahul Shah, Nancy Suh 1 Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 2 Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 TABLE OF CONTENTS INTRODUCTION ........................................................................................................................... 4 INDUSTRY OVERVIEW................................................................................................................ 5 VALUE CHAIN .................................................................................................................................. 5 PLAYERS .......................................................................................................................................... 5 INDUSTRY GROWTH RATES .............................................................................................................. 6 NOKIA MARKETING STRATEGY............................................................................................... 7 INDUSTRY TRENDS.................................................................................................................... 10 KEY D ECISIONS FACING NOKIA ....................
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