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Global Investors Case

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ACCT 463 Management Control
Global Investors, Inc. Case Summary

Shaoxiong Zhang 260558334

Professor Philippe Levy

February 9, 2016

Introduction Global Investors Inc., founded in 1965, was a private owned investment management company headquartered in New York. The firm mainly focuses on two activities: investment management (which included research, portfolio management, and trading) and client services (which included marketing and investor advisory services provided to institutional investors and independent brokers/dealers).
Objectives
As a large investment management firm, one of the Global Investors Inc.’s objectives is to increase profits. Also, the company wants to implement new efficient transfer pricing model.
Strategies
The company has a different investment strategy from their competitors. They based all of its investment strategies on financial market theories developing from academic research. The company developed a prominent New York-based research team comprised mostly of PhD-qualified investment professionals, who were supported by contracted-for advice from some of the world’s most highly regarded academic financial economists. In addition to investment strategy, Global Investors was also committed to lowering its trading costs through economies of scale, technological investments aimed at increasing liquidity, and crossing activities (matching clients’ buy and sell requests). Global Investors also has four subsidiaries established around the world: London, Tokyo, Singapore and San Francisco. These subsidiaries have attracted many regional and international clients by using their local funds. The subsidiaries had historically been treated as cost-focused profit centers, while the administrative departments providing support were treated as cost centers.
Desired behaviors

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