Campbell & Bailyn’s Boston Office Reorganization

Campbell & Bailyn’s Boston Office Reorganization

What we did well

* Diagnostics: We arrived at the consensus conclusion based on the numerical point analysis

* Made an attempt to reach the depth of the problem

* Please refer the examples given in the thread discussion

* Discussion of compensation article and its key points (thread – “Key points from compensation articles - C&B”)

* Pros and cons of KAT (in thread - Pros and Cons of KAT)

* Pros and cons of PM (in thread - Pros and Cons of PM)

* Answered all the questions asked in the lecture slide (in thread - Questions From Slides, also highlighted below)

* Recommendations (Highlighted below)

What we missed

* The overall structure of the recommendations

* All the points

Before arriving at the recommendations we have answered the following questions

Refer thread “Questions from Slides”

What are the trends in the investment banking industry affecting C&B in 2007 and what are the changes within the customer base that are putting pressure on the organization?

In 2007, the recession affected C&B which included the meltdown in the mortgage-backed securities market that triggered the collapse of billions of dollars. The industry had undergone many changes in the last ten years, witnessing an increase in new competitors and new products. With the new products and more specialized customers came the need for more expertise to market and sell. 

Prior to the environmental challenges, what was C&B’s competitive strategy with respect to its bond division? 

The bond division consisted of five generalists who each managed their own group of accounts (60 in total) and four specialists who shared a common group of about 120 small customers. Salespeople invested years in building up key customer relationships, and they nurtured those relationships through social interaction outside of the traditional work environment. There was an unspoken pecking...