Edward Jones Case Study

Topics: Broker, Stock broker, Defined contribution plan Pages: 3 (795 words) Published: December 8, 2010
Executive Summary
Edward Jones is a brokerage house with a unique strategy. . Their unique focused strategy was based on having multiple offices around the country , each of them having one Financial Advisor ( FA's ). Edward Jones invests a lot in employees with low experience in order to train them their way. This gives them very low turnover. Moreover Edward Jones focuses on suburban zones. What strategy should Edward Jones be using in the future?

Company Overview
Since it was founded in 1922 by Edward Jones Sr, the company has expanded throughout the North America and the World. With John Bachmann as his partner, Edward Ted Jones jr. made the company grew rapidly by focusing on individual investors. In 2006, Edward Jones became the 4th largest brokerage firm in the United States and held books overseas , especially in the United Kingdom. Industry Analysis

Nowadays , 50% of family households own equities. For many, it is a way to improve their lives later on as they approach retirement.
Trends are slowly starting to change due to the appearance of discount brokers. These brokers offer low-priced trades.
Many firms are switching to Defined Contribution Retirement Plans. These plans are defined contribution plans. This significates that the employer's annual contribution is specified in the contract. Moreover, investment earnings make the benefits from this plan fluctuate.

In addition the brokerage industry is growing with the constant increase value of the stock market. Edward Jones Issues
Due to the fast-paced evolution of the business and due to competitor threat, questions are being asked internally about how to counter these issues. The past imposed limits should perhaps be questionned in order to make way for newer and more efficient strategies. However it is difficult to change the company without affecting its core values and its competitive advantages. SWOT Analysis

Edward Jones posesses many strenghts in their corporation. They...
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