Management Planning Paper/Lehman Brothers

Management Planning Paper (Lehman Brothers)

This paper is written on the management planning of Lehman Brothers and a brief history of the company. The planning function of the company will be analyzed and the impact of legal issues, ethics, and corporate responsibility will be discussed in this paper. A German immigrant by the name of Henry Lehman opened a general store in Alabama in 1844. In the year of 1850 Henry’s brothers Emanuel and Mayer joined as partners and named the business Lehman Brothers. The brothers took cotton from farmers to settle accounts and then traded for money and merchandise and earned the reputation as traders. The brothers established the New York Cotton Exchange after the Civil War in 1860 and later became members of the New York Stock Exchange in 1887. A public offering was underwritten for the International Steam Pump in 1889 and 40 years later the Lehman Corporation was created as a closed end investment company in 1929. The Lehman Brothers underwrites the IPO of DuMont in 1930 (television manufacturer) and underwrites the IPO of Digital Equipment and Hertz Rent a-Car in 1950. The brothers created an association called the “fearsome foursome with the partners of Salmon Brothers, Merrill Lynch, and Blyth and Company the year of 1962. The foursome challenged major underwriters (A brief history of Lehman Brothers).

The foursome became one of the first investment banks to open an office in London taking the advantage of the bond market in Europe. Lehman acquired Abrams & Co and American Express acquired Lehman Brothers in 1984.In 1986-188 the brothers had a seat on the London Stock Ex Change and the Tokyo Stock Exchange. The company of Lehman became independent through public stock offering. Lehman Brothers common stock started to trade on the New York & Pacific stock exchanges in 1994.In 1998 a rumors have surfaced of the near collapse of Long Term Capital Management caused a cash crunch and cost had to be cut. Lehman establishes a...