As a result of the increasingly competitive nature of business, most notably market globalization, many organizations have been forced to restructure and or downsize in an effort to survive. This case study is a direct example of such tangibles. In 1998 Broadway Brokers a prominent worldwide brokerage firm boasting 10,000 employees and once holding the largest market share of any other firm at the time, found themselves on the brink of implosion. Broadway Brokers faced immense competition from firms that charge significantly less for their services (but provided little or no financial advice), commonly known as discount brokers and internet brokerage services, where securities are bought and sold over the internet. Senior executives …show more content…
Employees that were close to retirement should be offered a generous severance package to leave early, a reward for their loyalty as well as their longevity. I’m a firm believer that if you’re loyal to your organization, they should in turn be loyal to you, especially if the financial condition of the company is no fault of your own. Some clients may be turned off and take their business elsewhere, if a broker they’ve developed a relationship with has been treated unfairly and or laid off. Evidence to support this, is a quote from the CEO of Broadway Brokers in a Financial Times article, “Our business rests on a firm base of trust and service” (Jick, T.D., Peiperl, M.A., 2011, pg. 385). With regard to the vast amount of office locations Broadway Broker has all over the world, coupled with the labor costs and pricey rent, it is critical for the organization to consolidate its property and close offices that have the highest operating costs. Special accommodations can be made for the most lucrative clients in the event their local office closed and their broker relocated. These clients can be facilitated via the internet, video chat and in person meetings when