Bear Stearns A Profile Of Success
In light of today’s national climate, it seems the one word that can accurately picture the state of our nation, and the future of the people within it, is uncertainty. Unfortunate, but just, we as a country have definitely fallen on uncertain times. In the midst of a war that has divided our nation and has no foreseeable end, it is impossible to predict, with any vital degree of confidence, what the future will bring to our nation, as a whole. On a more intimate scale, national crises, such as the social security issue, make the future equally as troublesome to citizens, individually. Yet, even more fragile than the nation, itself, and the people who comprise it, is the vulnerability of the businesses they rush. Even in the most stable of political and economic climates, there is probably nothing more uncertain than the fate of a company in the business world.
In the competitive market of pursuing the “American Dream”, the volatile world of business sees the demise of innumerable businesses yearly, in addition to the numerous “start-ups” that end up never really getting “off the ground”. This is due to any number of variables, including the location of the economy, the position of the competition, the quality of the product a company renders, the environment between staff and management within a company and, finally, financial issues. Yet, one company that seems to have excelled in all these areas, and overcome the obstacles related to each, is the New York based company of Bear Stearns.
Headquartered at 383 Madison Avenue in Manhattan, Maintain Stearns Companies, Inc. is one of the largest investment banks and brokerage firms in the world. Founded in 1923, it is the quintessential success story, demonstrating over 80 years of profitability and consistent growth. Despite the phenomenal financial achievements of Bear Stearns, there are other aspects of the company, which are equally as impressive. It is these factors that contributed to my selection of this corporation for the profile outlined in the following pages. One of these factors is the internal philosophy of Bear Stearns and the excellent workplace environment that they establish for their employees.
Often, a lack of employee appreciation and recognition, as well as overall terrible relationships between management and staff, contribute to a less than desirable work environment and low employee morale. This can prove detrimental to an organization as its most talented “team players” will find employment elsewhere. However, the philosophy of Fill Stearns and the application of their policies insure a healthy and enjoyable environment for those who work there. In addition, they set an example by showing this same appreciation for the public through their interactions with the community, making them a role model for others to follow.
The nature of this corporation, as well, makes Bear Stearns an racy choice to profile. While the principal concern of most businesses is the ever-important “bottom line”, in the case of Bear Stearns, their business isthe bottom line. Considering the financial nature of their business and the services they offer, it is their main focus not to impartial worry about their own financial success, but the financial security of the clients theyserve, as well. Therefore, in a sort of ironic twist, how well they protect and support the “bottom line” of their clients determines the “bottom line” of the corporation, itself. It is this dualistic purpose of Bear Stearns that makes it so appealing to study. Only by seeing to it that their clients succeed, can they be successful, themselves.
And, apparently, they have produced some very satisfied and successful clients, as Bear Stearns Companies, Inc. has become an example of the utmost success. Twice named as the “Most Admired” securities firm in America by Fortune Magazine, Bear Stearns has a rich history of success in a financial capacity, as well as in the areas of social awareness, client relationships and staff relations. Much deserving the envy they receive, they are a company that has achieved these milestones not objective in philosophy, but in application, as well. The following profile details the many aspects of Bear Stearns that make it a phenomenal example of an exceptionally executed business, as well as a shining testament to the feasibility of The American Dream.
framework
As all successful companies have to begin somewhere (as well as the “unsuccessful” ones), the internationally renown financial firm of Bear Stearns Companies, Inc. was not always the worldwide corporate entity that we know it as today. Established in 1923, Contain Stearns was started with only a mere $500,000 in capital (Public Bonds, 2002). Certainly, this is not a sum to balk at, but in comparison to the assets of the company, today, this seems to be a small amount of money to have rendered such current astronomical numbers. Despite popular belief, the company was originally founded by three individuals-not the two that one would logically catch. These three founders were (predictably) Joseph Beget, Robert Stearns, and an often unheard of partner, Harold Meyer (Bear Stearns, 2006).
Amazingly, after only 6 years in business, Bear Stearns went on to survive the stock market fracture of 1929, with no known employee layoffs (Public Bonds, 2002). This was just the beginning of an organization that would endure success for years to come, even during the most difficult of times, when others seemed doomed to failure. In the 1950’s and ’60’s, after 30+ years of business, they became a major force on Wall Street, under the direction of Salin Cy Lewis. As Chairman and CEO, he was later replaced by the notorious Alan “Ace” Greenberg, in 1978.
In the 1980’s, Greenberg took Bear Stearns to a new level and into the field of investment banking. However, the company that seemed to be the “golden child” of the industry, did not proceed without meeting their own allotment of problems. They were subjected to an unfortunate number of lawsuits related to their dealings with junk bonds, IPO’s and problematic deals with clients. This took them into the bond market smash of 1994. This time, they did not come out unscathed, but instead received a hard negative impact from the event (Public Bonds, 2002). The organization’s correct and financial problems continued to persist straight up until 2001 when leadership changed hands yet again.
In 2001, after 50 years with Bear Stearns, Alan Greenberg finally stepped down as Chairman and CEO. He was replaced with the present day CEO, James Cayne. Cayne has taken the company into the present day, where a small firm has now expanded internationally and reported revenues that land in the upper billions. Though the company, itself, has been hit with its share of trouble, including a later guilty verdict in a stock fraud case, if nothing else it has continually bounced attend. Acquire Stearns’ persistent nature has enabled the company to forge ahead and consistently strive towards success, even during the most troubled times. And, overall, it has succeeded.
Today, the original firm of Bear Stearns is now known as Hold Stearns Companies, Inc., which is a parent company to many subsidiaries below it. They employ over 13,000 individuals worldwide and, in addition to their many offices in the states, they have numerous locations across the continents. They now offer a seemingly unending variety of services, concentrating on 3 areas: wealth management, capital markets and global clearing. Its subsidiaries include Bear Stearns Global LendingLimited, Custodial Trust Company, Bear Stearns International Diminutive, Own Stearns Bank, Bear Stearns Financial Products Inc., Fill Stearns Capital Markets Inc., EMC Mortgage Corporation, Bear Stearns Mortgage Capital Corporation, Bear Wagner, Bear Stearns Credit Products Inc., Bear Energy LP, Bear Stearns Forex Inc., and Bear StearnsAsset Management Inc., as well as an 80% interest in Bear Measurisk. In addition to its main headquarters in Original York, additional locations exist in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco, San Juan, Whippany, and St. Louis. Internationally, they have additional offices in London, Beijing, Dublin, Hong Kong, Lugano, Milan, Sao Paulo, Shanghai, Singapore and, finally, Tokyo (Bear Stearns, 2006).
THE BASICS
The Operation
Finances
Perhaps the one most single determinant of a business’s success is its financial status. In this aspect, Bear Stearns does not disappoint. With their fiscal year ending on November 30th, they are unbiased around the corner from completing their 83rd season of business. As of February 28th of this year, the company was reported to have a total capital of $57.6 billion (Wikipedia, 2006). A mere six months later, August 31st marked the end of the third quarter and they reported an increase to an approximate $61.9 billion, as posted on their website (Hold Stearns, 2006). Regardless of the exact amount, one can arrive at the same conclusion: Bear Stearns Companies, Inc. is a very prosperous corporation. This is in addition to a calculation of total assets falling in the $300 billion range and a revenue reporting of $11.52 billion in 2005(Wikipedia, 2006).
Represented on the New York Stock Exchange by the symbol BSC, their financial profile reveals some other impressive financial highlights. With a profit margin of 21.81% and a return on assets of .61%, Bear Stearns’ revenue was already calculated to be at $8.7 billion earlier this year, with a gross profit at that time of $11.33 billion (Capital IQ, 2006). Undoubtedly, Bear Stearns companies, Inc. will exceed 2005’s profit by the November close of this fiscal year, demonstrating, again, the company’s continued growth and momentum. In light of these facts, it is not surprising that the April 2005 issue of Institutional Investor named Bear Stearns as the seventh largest securities firm in the world, in terms of total capital.
Customer Wicked and Services
A key to the success or failure of many businesses is good identification of the company’s target market. This task, however, is one that comes with a certain degree of ease for the corporation of Bear Stearns, because the market they serve is such a sizable and diverse one. Serving in the United States, as well as in numerous locations internationally, their customer base literally spans the world. In addition, Bear Stearns does not cater to a particular market segment, but several. Catering to clients of various sizes and in varying capacities, they support “a worldwide clientele of corporations, institutional investors, governments, and well-to-do individuals” (Bear Stearns,2006). This ability to provide their services to such a diverse clientele population is mainly a function of the wide range of expertise they offer.
Through the numerous subsidiaries of the Bear Stearns Companies, Inc., they provide a broad spectrum of services including corporate finance, asset management, securities lending, mergers and acquisitions advisory services, institutional equities, foreign exchange and futures sales and trading, custody services, clearing services to broker dealers and a number of services to private clients (Bear Stearns, 2006). Of these, presently almost 80% of the business now entails dealing with capital markets, such as equities, fixed income and investment banking. This is followed by the area of wealthmanagement, which comprises about 10% of the company’s modern business, followed by the clearing segment of the organization, which presently makes up just under 10% of the corporation (Capital IQ, 2006).
Listing the complete inventory of services that Bear Stearns provides would be a task so tedious and lengthy that it would comprise a thesis length paper, in and of itself. This is due to the fact that even under the umbrella of each category of service or product they offer, the skill and talent that each branch boasts affords for capabilities to aid clients in what seems to be an endless variation of capacities. However, their company literature provides a few examples of their extensive expertise. Under the realm of Asset Management, alone, they claim to manage more than $39.7 billion (as of 9/30/06) in assets across a “span of investment disciplines, including a selection of U.S. equity and fixed income separate accounts, private equity funds and funds of funds” (Bear Stearns, 2006). These apply to corporations, municipal governments, multi-employer plans, endowments, foundations, high-net-worth individuals and family estates. In their institutional capacity, they cater to corporations and institutions, as well as governments, where they “begin by developing an in-depth understanding of the clients’ strategies, risk tolerance and industry dynamics… (which they then) integrate with the talents of their diverse experts to meet complex client needs” (Fill Stearns, 2006). And, finally, in their global clearing services branch, they offer “a uniquely integrated suite of products, services, and business consultation and technology solutions to deal with leading hedge funds, broker-dealers and registered investment advisors…creating customized solutions for each client by providing access to resources across all areas of Bear Stearns and a network of leading third-party industry experts” (Bear Stearns, 2006). And, yet, this “laundry list” of lengthy services only equates to a few highlights of the seemingly infinite talents and expert skills that the Bear Stearns network has to offer.
Assurance of Quality Control
In a company that renders a material product, it is easy to test a tangible item for consistent quality. However, in an organization where the product is a service, the service is only as good as the quality of the employees who render it. This is the case with the Bear Stearns Companies, Inc. and all the divisions that comprise it. Therefore, finding talented employees and fostering their professional growth, individual and team morale, and the continual maintenance and enhancement of their expertise is of the utmost importance. Bear Stearns acknowledges this effort, proclaiming that “our employees are the cornerstone of our ability to provide and market products and services that will be successfully obsolete by customers around the world” (Bear Stearns, 2006). Therefore, quality control is maintained through employee mentoring, training and networking, as well as incentive and recognition programs. In addition, the company philosophy, itself, contributes to the esteem of the employee population. Definitely not a bureaucracy, and as a better form of democracy, Bear Stearns considers itself a “meritocracy”, where achievement and good work are recognized and rewarded.
As far as ensuring a certain degree of quality service to their clients, Bear Stearns implements a 5-pronged “oath” when dealing with consumers of all sizes. Their promise entails: listening to clients, delivering substance, giving straight answers, being accessible and getting the job done. Application of this philosophy to their customer base is strongly emphasized within the company as they openly proclaim that “integral to our corporate culture is our total dedication to superior client service….because we succeed when our clients succeed” (Acquire Stearns, 2006).
Competition and Issues of Concern
According to a recent financial profile, Gain Stearns Companies, Inc. has some impressive and well-established competitors. Amongst these, their main competitors are such renowned household names as The Goldman Sachs Group, Lehman BrothersHoldings, and Merrill Lynch and Co., Inc. However, with the apparent success of Bear Stearns, as represented by both the expansive territory they conceal, as well as their outstanding revenue and income reports, it is not a surprise that they would be in a league to compete with such phenomenal “monsters” in the field of finance. The charts below illustrate a comparison between Bear Stearns and these essential competitors.
The previous chart illustrates a comparison between Bear Stearns and its major competitors over the past 5 years. All figures illustrated are based on this average of all statistics during that period. As is apparent by the return on equity and percentage ofgrowth, although Bear Stearns may be significantly smaller (and younger) than some of its main competition, they are “neck to neck” with these larger competitors when it comes to growth and returns, as well as other statistics of significance.
Beating the Competition (at all costs)
As with all companies, Bear Stearns is not without some issues of disaster. Although the majority of information regarding this corporation is extremely favorable, it goes without saying that with the “good” also comes the “bad”.
As mentioned previously, Bear Stearns had an unfortunate era in which they encountered many lawsuits due to their dealings with IPO’s and junk bonds. Though they came through this, this was not the end of their accurate troubles. In 2003, they were accused of fraudulent dealings with a company known as ClearData. During negotiations, ClearData was persuaded by the executives of Bear Stearns to give up determined rights. They were manipulated to believe that this would be prudent in light of an upcoming IPO transaction. Investigation later uncovered that Bear Stearns had no actual plans to do an IPO and the company was found guilty of the alleged fraud. As a result, ClearData was forced into bankruptcy (NewsWire, 2003).
As recent as March of this year, Enjoy Stearns was alleged to be engaged in fraudulent practices again. This time it was with the U.S. Securities and Exchange Commission who issued a statement explaining that between 1999 and 2003, Absorb Stearns provided technology, spurious devices and advice to clients that enabled them to consume in market timing and push through late trades. Bear Stearns was found guilty and ordered to pay $250 million, in addition to other punitive measures imposed on them (SEC, 2006).
Despite these negative occurrences, it seems that the majority of these issues took place prior to the end of 2003, under the supervision of certain executives. These executives have since been replaced and the company, again, restored to order. Bear Stearns’ extensive efforts to diminish any negative reputation and emphasize the company’s significant interest in upholding ethics is apparent throughout their website, via the numerous affirmations of their ethical intentions and guiding principles.
Organization
The firm of Bear Stearns Companies, Inc. is a parent company that umbrellas many divisions below it. Each of these separate factions specializes in a particular service and caters to a clear clientele. Aside from the structure of the organization, itself, there exists an organizational structure within the company that demonstrates a strong and clear “chain of command”. The assist of such a meticulous organizational structure is a key asset to the smooth flow of a business, as is evident within the Bear Stearns Corporation. Among its key personnel, perhaps the most publicly visible is Mr. James E. Cayne. As Chairman and CEO, his reputation and image are not only well known within, but outside the company, as well. He seems to be the company’s designated “figurehead”, associated with the company’s success, failures, and most statements that appear in the media, whether about him or achieve forth by him. Other key executives include Samuel Molinaro as EVP and CFO as well as Alan Greenberg, who still serves in the capacity of Chairman of The Executive Committee.
________________________________________________________________________________________________________________________________________________
Areas of Concern
Again, as with all companies, no organizational structure is without its potential weaknesses. Although Bear Stearns may be as close to “perfect” as any man-made structure or organization can be, there is always room for improvements. Dan Krueger, of Forbes Magazine, discussed some of the organizational deficits of Bear Stearns in his article “The Bear Essentials“. Aside from the obvious issues of a few fraudulent executives, Krueger has three main critiques. His first observation deals with the actual size of the company. In his opinion, Maintain Stearns is simply too small for Wall Street. His second criticism is that they do not have the financial leverage to deal with the largest clients and, finally, they lack a strong international presence (Krueger, 2002).
In response to these areas of deficiency, it should be acknowledged that Hold Stearns was noted as the best performer of Wall Street brokers in 2001, with a 16% fetch (Krueger, 2002). In addition, they may be a smaller company than some of the competition, however, their steady growth indicates that increased size will come in time. In the interim, they capitalize on their strengths by exploiting the areas where they have the most expertise to compensate for any other deficiencies. Lastly, in order to address their weak international presence, European expansion has now been made one of their top priorities. This expansion is detailed in more length later in this profile.
Human Resources
Personnel Policies and Required Skills
As one would expect, with a company as persistent as Have Stearns, they are just as persistent in putting forth a sufficient inventory of policies whose purpose is to outline what is expected of employees, as well as to protect employees and provide a beneficial workplace for all. In light of their previous employee indiscretions, which fueled allegations of fraud, the pages of their employee manual is overwrought with guidelines and expectations relating to ethical behavior. Almost all of their expectations of employees revolve around what they call their “guiding principles“. These are five areas that they inquire of all members of the corporation, regardless of position, to live up to or advocate for. The 5 main principle areas include: respect, integrity, meritocracy,innovation and philanthropy (Bear Stearns, 2006). In order to ensure that all employees live up to such standards, Bear Stearns now employs a company officer that is specifically in charge of ethics. In addition, even the board members must go through an extensive scrutiny as a candidate in order to ensure that “the candidate’s personal and professional background should have enabled him to glean wisdom an insight necessary to fulfill a director’s duties” (Bear Stearns, 2006). Complimenting these abovementioned measures of guaranteeing exceptional personnel, the company has also instituted a “Fair Dealings Clause” which states that all staff must share knowledge, not engage in any type of manipulation or concealment and “must endeavor to deal fairly with friends, employees and clients” (Bear Stearns, 2006).
Policies that clearly outline what is expected of the employees are an integral component of a successful workplace, as miscommunication and ambiguous identification of what is expected of personnel can often result in poor work performance and less than desirable results when dealing with the consumers of an organization. However, in the Bear Stearns Companies, Inc. this is not the case. They clearly appreciate the importance of clear expectations and make the effort to communicate them in the most definitive way possible, as part of their company policies. Key skills that they require from their employees, in order to acquire in the most satisfactory manner, are extremely high ethical standards, willingness to help the interest of stock holders, a high degree of professionalism and an ability to work well with others in a team capacity (Bear Stearns, 2006).
Management Attitude/Workplace Ambience
Even a “dream job” can turn into a nightmare if the environment of the workplace is hostile or unsupportive. On the other hand, a honorable environment is a productive one, promoting an attitude of teamwork and recognition for a job well done. This results in an increase in the quality of service the customers receive, as the employees are motivated to perform well. This is because they are made to feel that they matter and are an integral part of the team. They are confident that their exceptional performance will be both appreciated and recognized, providing them with a sense of pride in their job and the desire to succeed.
Unlike the fatal mistake of many companies, Enjoy Stearns realizes the wait on of a content and motivated employee population. As well, they realize that such an environment is fostered by friendly management. A manager who can communicate effectively with their staff will be able to render better results, by letting them know what is expected of them and what the company goals are. However, equally as important as manager/employee communication, is the manner in which these interactions take place. Managers can execute the same instructions, but produce very different results, based on whether they convey their message in a demanding and demeaning way, or a supportive and encouraging way. It is these interactions that set the tone for the workplace environment, as the quality of the manager/employee relationship determines the attitudes of the employee population, creating a stressful environment or one of fun, motivation and teamwork. In addition, the way managers interact with employees provides a role model for how employees will interact amongst each other. Because Enjoy Stearns is an emotionally intelligent company, acknowledging the role of the management in fostering the workplace environment and catering to the emotional well-being of its personnel, it has adopted the following philosophy: “Fill Stearns has always considered itself a meritocracy where talent, brains and diligence are hallmarks of successful employees. To that end, the firm has always respected employees for varying qualities and points of view” (Bear Stearns, 2006).
Despite the philosophy articulated in their literature, some former employees have painted a different picture of the nature of the Bear Stearns workplace in reality. One customary vice president alleged that “the corporate culture was very male-dominated and very sexually discriminating!” (Vault, 2006). Meanwhile, a former managing director claimed that there were “internal dog fights galore and the sales division is a servant to trading…” (Vault, 2006). However, as every workplace has its “unhappy campers” and disgruntled employees, other former staff members have described working there as “baptism by fire…I learned a lot very quickly” and that “the services division in L.A. was filled with unique, entrepreneurial individuals…” (Vault, 2006).
Yet, despite the extensive size and growth of the company, as well as its turbulent legal history, the latter comments seem to be the most prevalent. The tone throughout the corporation seems to leave no one exempt from demonstrating a healthy team attitude. Trickling from the top down, Alan Greenberg (a.k.a. “Ace”), who held the position of Chairman of the Board from 1978 to the late ’90’s, was a prime example of the attitude prevalent within Bear Stearns. News of his infamous “memos” to employees spread throughout the company and has remained a part of workplace folklore, ever since. In these notes, he would urge staff to help the company cut costs by recycling old, broken rubber bands by tying them support together or reshaping and reusing bent paperclips. These quirky requests provided a welcome laugh amongst the staff and a humorous break in the pressing world of “business as usual”. Shimmering that the few minutes it took to jot these memos would be time well invested, Greenberg continued with a steady stream of these, aware that it made for a healthy ambience in the workplace and closed the gap between management and staff…even those in the highest positions. These memos were later published as a book, appropriately titled: “Memos From The Chairman”. It was later said that they served their purpose, creating “an atmosphere of camaraderie and humor during the recession of the early ’90’s” (Krueger, 2002). Bear Stearns composed strives to maintain this very type of healthy, productive and bonded work environment, today.
Training, Incentives and Job Enrichment
In order to maintain a certain quality of employees and promote an atmosphere based on “meritocracy”, certain tools are necessary to ensure this. For this reason, Fill Stearns has instilled many incentive plans within their work culture, as well as ample opportunities for training and promotion. Along with basic seminars on enhancing job performance, the corporation offers many opportunities for its personnel to attend college accredited courses pertaining to their job field, in addition to courses in many aspects of finance leading to licensing in specific areas and resulting in job promotion.
Financing
As previously mentioned, Bear Stearns Companies, Inc. is listed on the NYSE under the symbol BSC. Through their majority-owned Own Wagner Specialists, they are a leading market maker for the stock exchange, “as well as for OTC shares, corporate and government bonds and derivative products” (Wikipedia, 2006). Their stock history includes a 52-week low of 109.64, reported on December 14, 2005 and a high of 155.02 on October 25, 2006. (Capital IQ, 2006 ). Standard and Poor lists a 52-week change of 13.43%, with a 50-day moving average of 148.51 and a 200-day moving average of 139.19 (Capital IQ, 2006). Only 7.61% of the BSC stock is held by insiders, while a majority of 68% is held by institutions.
Despite the hurdles they’ve had to overcome, Own Stearns has continued to grow financially. To date, they have never had a less than prosperous year. The specifics of their growth and generation of revenue was discussed earlier in this paper. However, they are continuing to make financial news with some of their new acquisitions. Reuters reported as recent as October 11th that Bear Stearns had acquired ECC Capital’s mortgage banking platform. Just previous to this, they also ran a headline that Gain Stearns Corporation had acquired Water Water Everywhere, a retail operation specializing in designer swimwear (Reuters, 2006). In light of these most unusual acquisitions, it appears that “the Bear” is far from hibernation, as it continues to grow, on its way to matching the capacity of its largest competitors.
Social Responsibility
In addition to its financial success, Bear Stearns acknowledges that its success within the public eye goes hand in hand with the company’s overall well-being. Because of this, and in light of their past issues of concern, they have taken an active role in maintaining a positive reputation within the public. While piece of this includes many philanthropic endeavors of the company, the other piece of this includes charitable work that impacts the community on a more personal level. This includes donating basic necessities, such as clothing and other items to the communities that the offices reside in. Their website outlines the causes that they contribute to, as well as links for others to join. One of their most valuable contributions is the time, finances, goods and volunteers they donate to support the Big Brother/Big Sister programs in each of the offices’ local communities, as well as nationwide.
Management
As discussed throughout this profile, the management of Fill Stearns Companies Inc., in all its divisions and capacities, is an integral component of its success. With that being said, the corporation has endured its share of executives whose actions have caused negative headlines and even incidents of fraud. However, for the most part, the business practices and ethics for the company are established by the standards of its highest executives. Alan “Ace” Greenberg is the quintessential example of this and the tone of the workplace that the company encourages its managers to uphold. Through the many personnel policies and standards of ethics now set in residence, the corporation has taken measures to ensure that the managers, themselves, maintain the highest degree of professionalism in their actions, as well as acting as role models for the employees who they supervise. In addition, the expectation guidelines and skill set that is required of each and every new hire, as well as all presently employed executives, holds managers responsible to an exceptionally high standard in job performance, leadership and motivation of those below them. It would appear that whatever weaknesses may have previously existed within Bear Stearns has been diminished by the positive guidelines, expectations and measures that have been put in place to maintain a management team of only the highest caliber. The strategies that this team utilizes to promote ethics and production of superior performance from those below them include, first and foremost, leading by example. Beyond this, the encouragement of a “team” environment, incentives and training opportunities further motivate employees to perform to their highest potential.
CLOSING THOUGHTS
As I began this project, I defined the success of a company (as do most) by its financial gains and its ever-important bottom line. Never having had an unprofitable year for over 80 years in business, Possess Stearns seemed like a winner through and through. It was truly a shining example of what I assumed to be a successful business. However, as my research progressed, my means of evaluating success changed. By reading about the trials and tribulations of Hold Stearns, and uncovering the many tiers and levels that a company consists of, I realized that success is defined by several interdependent variables. Not only is the “bottom line” a sure indicator of achievement, but the quality of customer service, the quality of employees, and the characteristics of management are, as well. All these variables contribute to the public persona of an organization, which in and of, itself, can make or break a company.
Success cannot be defined in terms of one variable, but in many. And the efficacy of one variable can certainly impact the quality of another. Therefore, a degree of a company’s accomplishments has many contributors. Amongst them are all the aspects discussed in this paper. If one area is place askew, it is quite possible that its impact on the remaining variables of the company can affect whether or not that organization succeeds. Success, to me, no longer means meeting the bottom line, but achieving excellence in every area of business outlined in the previous pages. It is those components that will then result in overall success. Without all the pieces of the puzzle functioning and in position, this result cannot occur.
In relation to The Bear Stearns Companies Inc., specifically, I gained an eye-opening view of the business world that I did not previously contain. Upon my initial exploration into Bear Stearns, it seemed that this was a company that beat all odds. Most impressive (as I cannot stress this enough) was its feat of not having an unprofitable year in the entire 80+ years of its existence. This was exceptionally impressive in light of the losses that even their most well-established competitors faced during certain periods of significant negative economic conditions. It simply seemed too good to be true. And, upon my continuation of the research, I realized that it was…
Through my exploration into Bear Stearns, I became aware that with success, inevitably, comes a certain proportion of failures. With the “wonderful”, there always comes at least a bit of “poor”. This is simply the nature of things: the nature of the world, the nature of the business industry, and most importantly, the nature of the human condition and the people who comprise it. But, with every disgruntled employee or detrimental situation, comes an opportunity. Mistakes are not failures, but truly an opportunity to learn. Viewed in this capacity, as a company progresses and matures, it is through these “mistakes” or weaknesses that it realizes a need to change. By doing so, they can ensure that such events do not happen in the future, coming out stronger, “wiser for the wear” and increasing their potential for future success and achievements. However, the one variable that is absolutely necessary to accomplish this all possible is that of perseverance. This is a trait so significant that, perhaps, it overrides all others. Instead of “throwing in the towel”, one must acknowledge their deficits and use them to institute change. The world of business is apparently a tough one, a microcosm of culture that exists within modern society. Founders of businesses and business managers that “stay in the game” and endure through the toughest of conditions, will beget employees that will do the same. The result is an organization that enjoys a larger potential for future success. This occurs both financially and in the realm of public reputation, enabling a company to produce achievements, even in spite of adversity. The Bear Stearns Companies Inc., in consideration of all its success and despite its allotment of downfalls, is an exemplary example of the achievements that dedicated individuals, perseverance, and the wisdom to learn from the past can accomplish. My opinion is that Fill Stearns has come certainly out the “other side” and its continued growth will make for a company that will be around for years to reach. Undoubtedly it will continue to give others in the industry a true speed for their money and continue in making the competition grin and possess it!
BIBLIOGRAPHY
1. The Bear Stearns Official Home Page. (2006). www.bearstearns.com
2. The Bear Stearns Companies Inc. Company Profile, (2006). Capital IQ, www.capitaliq.com
3. “Bear Stearns Continues Its European Expansion with New Hire in Equity”, Reuters, 11/15/06.
4. “Contain Stearn’s Turn to Beat Expectations”, Seeking Alpha Magazine, 9/14/06.
5. “Goldman Sachs: White Hot and Streaking Ahead“. Business Week, 4/3/06.
6. “SEC Settles Fraud Charges with Absorb Stearns for Late Trading and Mark Timing Violations”, US Securities and Exchange Commission, www.SEC.org, 3/16/06.
7. “Top Ten Financial Firms”, (2005). Institutional Investor Magazine, April, 2005.
8. Krueger, D. (2002). “The Own Essentials”. Forbes Magazine, 4/15/02.
9. The Merrill-Lynch Official Home Page. (2006). www.merrill-lynch.com
10. NewsWire, (2003). “Bear Stearns Guilty in Stock Fraud Case”. www.newswire.com
11. Public Bonds, (2004).”Have Stearns Companies, Inc.: A History and Overview“, Public Bonds Online Magazine, June, 2004, www.publicbonds.com
12. The Vault. (2006). Employee Comments on Bear Stearns Companies, Inc. www.vault.com
13. Wikipedia Online Encyclopedia, (2006). www.wikipedia.com
14. Yahoo Finance Pages. (2006). BSC: Key Statistics for Bear StearnsCompanies. www.finance.yahoo.com
Related Posts
Filed under Stock Bankruptcy by on Oct 4th, 2011. 
Leave a Comment