Case Analysis - Leading the Josie Esquivel Franchise
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- Date Submitted: 03/02/2015 10:00 AM
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The main issue of this case is whether Josie Esquivel should stay at Lehman Brothers or accept Morgan Stanley’s job offer.
There are three possible alternatives to solve this problem, which are (1) stay at Lehman Brothers; (2) accept Morgan Stanley’s offer; (3) Leave Lehman Brothers and find and another job but not to accept the offer of Morgan Stanley. Following are feasibility analysis of each alternative.
Stay at Lehman Brothers
Strengths:
• Esquivel can continue to build her franchise
• Lehman’s research department was ranked number one on the Institutional Investor’s All-America Research Team
• Fred Fraenkel was in charge of Lehman’s research department, which means Esquivel can work comfortably with her colleague. Also, she was personally very loyal to him.
• The Lehman’s performance evaluation system was fair
Weaknesses:
• Esquivel was not financially rewarded for her performance
• Lehman was not investing considerable resources in Esquivel’s sector
• Esquivel’s trust relationships were gone with Lehman’s cost cutting
• In order to keep successful in her industry, Esquivel needed to conduct a larger workload with lesser resources and little appreciation.
• Lack of competition; characterized life at Lehman had dissipated during the late eighties
The feasibility of this alternative is very low. According to the strengths and weaknesses analysis above, the challenge of Esquivel is very small if she stays at Lehman Brothers. However, Esquivel concluded that she is a person who would always look for challenges. So I think she prefers not to stay. Another reason why the feasibility of this solution is low is that although Lehman’s performance evaluation system was fair, Esquivel was not financially rewarded for her performance. The fixed-income division of Lehman continued to receive a greater proportion of resources. Furthermore, she cannot get enough resources to support her sector. So I think she might choose to leave.
Accept Morgan Stanley’s...
There are three possible alternatives to solve this problem, which are (1) stay at Lehman Brothers; (2) accept Morgan Stanley’s offer; (3) Leave Lehman Brothers and find and another job but not to accept the offer of Morgan Stanley. Following are feasibility analysis of each alternative.
Stay at Lehman Brothers
Strengths:
• Esquivel can continue to build her franchise
• Lehman’s research department was ranked number one on the Institutional Investor’s All-America Research Team
• Fred Fraenkel was in charge of Lehman’s research department, which means Esquivel can work comfortably with her colleague. Also, she was personally very loyal to him.
• The Lehman’s performance evaluation system was fair
Weaknesses:
• Esquivel was not financially rewarded for her performance
• Lehman was not investing considerable resources in Esquivel’s sector
• Esquivel’s trust relationships were gone with Lehman’s cost cutting
• In order to keep successful in her industry, Esquivel needed to conduct a larger workload with lesser resources and little appreciation.
• Lack of competition; characterized life at Lehman had dissipated during the late eighties
The feasibility of this alternative is very low. According to the strengths and weaknesses analysis above, the challenge of Esquivel is very small if she stays at Lehman Brothers. However, Esquivel concluded that she is a person who would always look for challenges. So I think she prefers not to stay. Another reason why the feasibility of this solution is low is that although Lehman’s performance evaluation system was fair, Esquivel was not financially rewarded for her performance. The fixed-income division of Lehman continued to receive a greater proportion of resources. Furthermore, she cannot get enough resources to support her sector. So I think she might choose to leave.
Accept Morgan Stanley’s...