Edward Jones Harvard Case

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In facing fluctuating markets, merging competition, and evolving industry platforms, Edward Jones must continuously strive to maintain its strong brand status while steadily expanding its business. A company with a strong foundation and esteemed reputation, Edward Jones has consistently differentiated itself from other financial firms. Its mission to build long-term relationships with clients big and small, regardless of geographic locality, and provide excellent, comprehensive service from dedicated advisors has been the backbone of its success. The challenge Edward Jones faces is how to ensure it will increase its market share and be competitive in light of recent industry changes and uncertainties while upholding its client satisfaction. One strategic initiative presently contemplated is to reduce company costs by consolidating financial advisors in 5-10 person offices in large metro areas. While this strategy offers some benefits, we believe the opportunity costs outweigh the cost savings. On the other hand…..”thesis……did we decide to consolidate just a few offices or leave all of them the same and focus on expansion?” Compared to other financial investment firms, Edward Jones is relatively small with limited resources and limited access to cash (Exhibit 5). Since its foundation it has remained a limited partnership. While remaining private has yielded benefits, it also limits its access to cash- not sure if I should just erase this. Consolidating offices in large metro areas will reduce some costs and free up money. Currently, Edward Jones has 8,205 branches located in large metro areas. 70% of them are located in metro areas where there are more than 10 offices in the area. If we were to consolidate these offices, we would close a total of 3487 offices. (See Exhibit…) In addition, our expenses, including rent, utilities, and BOA salary will

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