Medici Bank Essay

492 Words2 Pages
Cosimo di Medici, Head of a global organization in the fifteen century in Italy, managed the Medici Bank and his subsidiaries. Taking over said bank in 1434, it rapidly became the world’s largest business and unofficial head of state of the Florentine Republic. With diversified operations across Europe, Middle East and North Africa in financial services, sale distribution and manufacturing, the organization was separated into different divisions, each reporting to the holding company. They interacted with each other but remained financially and structurally independent. Cosimo di Medici was a successful global manager as he had the ability to coordinate activities over long distances . He was also able to identify and promote strong leaders which allowed him to decentralize its organization’s operations . Thanks to his communication skills and strong network, he was successful in managing the relationships he maintained with political authorities inside his country and gave the bank a strong reputation. He kept control and coordination of the subsidiaries through partnership’s agreements that clearly explained the management of the activities and the limits of the partners. Meetings were organized in Florence to report on any business issues in order to enhance, coordinate the activities despite the distance. For this period, Cosimo had the Management knowledge and knew effectively what to do at the right moment. For instance, as the company grew significantly, he could not supervise everything anymore and had to appoint personnel and install delegated power. He was also very careful in choosing people or in making a partnership with individuals that were not fit for the job. He has the ability to choose industry experts with the know-how and experience in business. Also he could manage risk without forgetting to run important business matters on a large

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