Structural Designs and Comparative Analysis

Presented By:Arya Pattnaik Sefali Mishra Sneha Gupta

It takes a great deal of boldness, and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it -NM Rothschild (1777-1836).

Administrative Component
The Rothschild House business network in Spain is an example of entrepreneurial decision-taking and management structure. Taking into Spanish scenario account that the entrepreneurial activity may consist of the following:
reducing the ever-existing corporate inefficiencies, gathering the profit opportunities that may be accurately perceived in markets facing uncertainty and/or innovating

Autonomy
As far as Rothschilds investments in Spain are concerned, it is also imperative to remark on the fact that the business network of the Rothschild family operated in the context of an incredibly unstable and politically-biased market, in which the Government intervened time and time again, often making very discretionary strategic decisions.

Centralization
At an internal level, the whole of the Rothschilds business network was organized in an extremely closed fashion, being promoted by the development of a dramatic family endogamy, and avoiding the presence of external specialists and managers. This proved to be, in the long term, the most effective system to prevent agency problems from happening, as well as the apparition of asymmetrical information from taking place. The reason lies in the fact that in the network of relationships and fidelities at the Rothschild agencies was settled in a strict, complex normative structure of established hierarchical rules overcoming the field of purely economic inconveniences. At the agencies, employees were not only Jewish, but were also linked by very closely-knit family circles promoted by the sharpest of family endogamies.

Complexity
The development of each and every one of the businesses, which turned the Rothschild House into the biggest investor in Spanish economic history , calls for a complex and exhaustive explanation, which is not within the scope of the present work. In the Spanish Economy scenario, the accomplishment of the different vectors of the entrepreneurial roles becomes especially complex.

Delegation of Authority
The Madrid main office was set up when Lionel Rothschild delegated all the affairs in Spain to Daniel Weisweiller, an agent who had travelled with him to this country in 1835. This agent was given a universal power of attorney to act and carry out any transaction on behalf of the Rothschild House . Weisweiller would work on his own for twenty years, with the exception of some months in 1838 when he was assisted by Scharfenberg before moving to Cuba, in the face of the spectacular rate that the transactions acquired in the island.

Differentiation
Rothschilds principal activities are divided into
Global Financial Advisory (covering M&A, debt advisory, restructuring and equity advisory), Wealth Management & Trust, Merchant Banking and Commercial Banking.

In all these areas Rothschild is the trusted advisor to its clients.

Spatial Differentiation
Rothschild has 50 offices in 36 countries. We are committed to being close to our clients and, as a result, have a large number of offices across the globe. We are in all the key financial cities in the world, but are also present in many of the high growth markets. We have recently established presence in Istanbul and Delhi and will continue to invest in our global franchise.

Geographical Dispersion
Africa & Middle East Asia Australia Central & Eastern Europe France Germany Italy Latin America North America Russia Spain UK

Integration
Achievement in business was accomplished either through their accurate knowledge of the market conditions, provided by their excellent network of agents, correspondents and associates, or through the integration of the Spanish political class around themselves.

Professionalization
Diversity is very important for Rothschild. The firm is based on intellectual, rather than financial capital: people are therefore our most important assets. To continue to provide our clients with innovative and creative ideas we need a diverse workforce which is able to respond to the demands made by the business and our clients, who themselves are increasingly more diverse. To this end, we look to recruit and develop successful individuals who will help shape the growth of the business in the future, and will be involved in all aspects of the business around the world.

Specialization
Given the significant and high quality deal volume at Rothschild, our graduates get earlier and deeper exposure to transactions and are given more responsibility earlier in their career. Graduates become rounded corporate finance advisors developing talent to advise global clients using their corporate finance, geographic and sector knowledge. The stability provided by our family ownership in this challenging market has allowed us focus on our core business of giving objective, unbiased and creative advice. Of special prominence are the innovations made in the study of cultural and ethnical factors in network development.

References
http://www.rothschild.com/ http://www.asia.rothschild.com/ http://www.youtube.com/watch?v=yhKHwrUA5SM&feat ure=related http://www.upo.es/serv/bib/wps/econ0632.pdf http://www.iamthewitness.com/DarylBradfordSmith_Roth schild.htm http://www.investmenteurope.net/investmenteurope/feature/2079826/marketeer-maxxs-secures-dealsrothschild-kleinwort-benson-investors