Edward Jones: Confronting Sucess
From a single independent traveling salesman, Edward Jones has evolved into a multi-national investment firm with branch offices spread across the United States, as well as several expansions in Canada and the United Kingdom. The company prides itself on its ability to sustain consistency in providing quality and accessible brokers, continuously enhancing the value of its services through face-to-face customer service as well as maintaining long-term relationships with its clients. For over 30 years, Edward Jones has enjoyed great success in the financial service industry under the same business strategy which imposed stringent internal limits that employees accepted and practiced religiously. However, in 2006, as business landscapes were altering, the company’s newly appointed CEO, Jim Weddle, was presented with a challenge; to assess the company’s current strategic positioning in the industry and providing strategic tools to remain competitive. Firstly, Weddle must address the existing issue, as of 2006, in order to determine an appropriate solution for the firm. One of the major issues that challenge the firm is its inability to develop new talent while retaining the existing key employees via competitive compensation packages or providing incentives to harvest a productive work environment. In addition, the firm needs to adapt to the changing needs of the baby-boomer market while providing high quality services to all levels of income. Furthermore, the firm is struggling because traditional brokerages are stealing the larger clients which propel the firm’s key financial advisors to seek other professional opportunities. Taking all this into account, Weddle must evaluate the internal strengths and weaknesses of his company against external threats and opportunities to aid him in constructing a successful and sustainable business strategy for Edward Jones.
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