Medici Case

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The Medici Bank, Organization and Management
Insights (interrelated)
* The dependency of the organization and structure of a firm on the nature of its business. * Trading and Banking : “the foundation of the firm’s business rests on trade in which most of the capital is employed” * Merchant bankers (whose business interests were international in scope) Vs Local bankers * Global nature and size of business; number of banks around the world * Centralized vs Decentralized banking firms: Medici was the latter of the two * Relationship between main office and branches

* Medici resembled a holding company; it owns shares in other company, in this case its subsidiaries. The holding company does not produce goods and services itself rather its purpose is to own shares in other companies. * Partnership agreement and ownership structure

* Frequency of reporting

* “Core Competency”
* Picking/Hiring Managers of the subsidiary partnerships * Control of managers and its evolution
* Ethos Vs Bottom Line balance
* Drivers and directives, and their influence on level and rate of growth * Venturing into cloth manufacturing: risks and differences in a product based business versus banking and a holding company * Quality control of a complex manufacturing process * Importance of technical knowledge esp. as intricacy grew * Important of communication

* Overseeing development of core product and competency * Core competency
* Dependent on external resources for products that are related to core competency * Like with NEC, core competency can allow disparate business become coherent: * For instance, “Canon’s core competencies in optics, imaging, and microprocessor controls have enabled it to enter, even dominate, markets as seemingly diverse as copiers, laser printers, cameras, and image scanners.”,...
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