SUMMARY

RSH is a New York investment banking firm or Rubin, Stern, and Hertz (RSH). This
company is strong in its research division. Stephen Connor is a director of research at RSH firm.
RSH corporate culture was especially strong in its research division. Senior research analysts
often began as junior analysts and remained at the firm long after the research director gave them
their own franchises. Each analyst strove to become ranked by Institutional Investor magazine
(II), but many considered the success of the research department as a whole equally if not more
important. RSH types companies have sell side research analysts. Sell side analysts cover
anywhere from 18-20 companies within their industry. Sell side analysts also serve as one source
of information for buy-side analysts. The culture of RSHs research department was based on
team work. That is why the employees turnover within this company is was very low.
Introducing Case:
First of all, the director of research is in trouble due to the resignation of the semi-conductor
analyst, Peter Thompson. This is very important because a semi-conductor analyst is strongly
needed because of an upcoming deal with the PowerChip company. Recently, junior analyst was
working on that position in order to cover the PowerChip deal.Recruiters were engaged by the
director. Recruiters send resumes of candidates to Stephen. Stephen wants to create a big pool of
candidates by pre-screening them. The director interviewed the candidates individually.

Question 1:
Among the four candidates (Gerald, David, Sonia and Seth) who you (as Stephen) would and
would not choose to be recruited as senior analyst of RSH. Discuss the justification for your
decision.

PROBLEM STATEMENT
To recruit a suitable replacement for RSHs star analyst Peter Thompson
SWOT of RSH:

Strengths:

1. Work culture- Many analyst and industry experts believed that RSH work culture was one
of the main competitive advantages. This is so as the company gave space to its analysts
to work and allowed and encouraged team work. This ensured the employees felt secured
about their job thereby addressing the employees need for safety and social needs.
2. Working in team helped to co-ordinate and achieve more. The employees felt that being
part of a team served them well. The company hence satisfied their need for affiliation.
3. The interpersonal relations among employees were good and ensured harmony among
them.
4. With seniors helping juniors learn about the industry the work culture was informal and
the development process addressed employees need for achievement and selfactualization.
5. Both the company and the employees believed that the quality of the research and success
of the department depended on team work. The employees displayed OCB and there was
a high employee engagement. This ensured that the productivity of the department was
high and also the employee turnover was low.
6. The awards at RSH were on performance of individual and teams performance. Hence
the employees experienced equity at RSH. This led to loyalty of employees towards the
company.

Weaknesses:

1. They dont have any back up options for their semi-conductor senior analyst. As the
employee turnover is low the company takes long time to fill the vacant position.
2. Being a big firm and to avoid attention of other companies towards a vacant position they
have to rely on third party recruiters. This is time consuming.
3. The company finds it difficult to find people who can match the talent requirement and
also fit into companys team culture.
Opportunity:
1. Upcoming deal with Power Chip Company
Threats:
1. Rival companies poaching talent pool of RSH.
2. Heavy dependence on one analyst for the semi-conductor.
Job Description:

Title: senior semi-conductor analyst

Duties: stock picking, report writing
Context: based on team work, senior analysts mentored junior analysts
Education and experience: well-educated and experienced candidates were required
Intellectual capabilities: writing skills, decision making, presentation skills, analytical

skills
Personality: punctual, co-operative, motivated, client oriented
Motivational characteristics: mentor, leadership skills, feedback

SWOT for Peter:

Strengths:

1. High analytical skills and a sharp mind for stocks.

2. Go getter, dependable to assign work.

3. Proactive. Took lead in taking projects.
4. Star performer both with clients and at II.
5. Attracted many clients owing to his intelligence.

Weaknesses:

1. Lone worker. Other team members grew uncomfortable working with him.
2. Very competitive nature that made team members feeling unsecured in his presence.

Threats:

1. Peters departure from the firm might cause RSH to lose some customers.
2. With a big deal coming up with Power Chip Company, loosing Peter at this time can
harm the prospects of the deal.
3. The market being very competitive will try to lure other analysts and assistants from RSH
causing further problems for RSH.
Factors:

Ability to build relations with Sales force, traders and buy side
Willingness to work in teams and guide junior analysts
Access to upper management in companies
Achieving, go getting attitude
Analytical Skills
Communication skills
Industry knowledge
Institutional Investor rankings
Writing of reports
Client oriented service (accessibility and responsiveness)
Stock selection
Industry connections

Critical Factors:

Ability to build relations with Sales force, traders and buy side
Willingness to work in teams and guide junior analysts
Access to upper management in companies
Industry knowledge
Institutional Investor rankings
Client oriented service (accessibility and responsiveness)
Writing of reports
Stock selection
Industry connections

Constraints Company cannot commit to give anyone fixed salary as Semi conductor industry is
a very volatile industry. It experiences different amount of growth year by year.

SWOT of Individual candidates:

David Hughes

STRENGTHS
Celebrity in Wall Street
Ranked 1st four times, 2nd five times

and 3rd or runner-up for six times

Vast industry knowledge and rare

interpersonal skills
Close relations with client
Team player and excellent mentor
OPPORTUNITIES
Expand the client base on his

reputation
Better guidance of junior members in

the firm
Takes the work as a new challenge

WEAKNESSES
Growing old
Unable to fully use technology
Relies heavily on assistants

THREATS
Change of his personal priorities

Might retire soon

Lacks stamina to do work

WEAKNESSES
Changed companies before landing at

Gotz and Loeb

Negative attitude towards employer

which can get the best out of him

Gerald Baum

STRENGTHS
Highly enthusiastic in semiconductor

industry
Ranked 11th within 18 months of

joining as per II.

Exceptional work and client service
Great skill set as what industry needs
Maintains active travel schedules and

and co-workers.
Mistreats his subordinates
Compensation as reward and source
of motivation

replies promptly

OPPORTUNITIES
Already a star and expected to rise in

ratings in future.
Enjoys working at large institutions,
hence can leverage the resources

THREATS
Will switch company if paid higher
Spoil the existing team building

process
Less respect for organization culture.

WEAKNESSES
Worked for a small company (WSH)
Needs lot of flexibility
Not willing to travel

THREATS
May not be able to cope up with fast

track work
Changes her priority to parenthood

WEAKNESSES
Needs to improve on report writing

Got ranked for the first time

provided by the company.

Sonia Meetha

STRENGTHS
Recognized as up-and-comer by II
Technical and sales background
Excellent writer
Emphasizes on global markets
Dedicated towards career
More emphasis on culture which is a

key feature of RSH

OPPORTUNITIES
High potential to become high ranked
Can get many clients with her
connections

Seth Horkum

STRENGTHS
Rated as runner up in II
Close contact with Buy side
Loyal to firm
Experienced in networking with sales

and trading.
Dedication towards work
Highly confident to grow up in
rankings
OPPORTUNITIES

THREATS

Right platform to achieve star status

Could be misused

in II.

Could be attracted other firms

WEAKNESSES
Relies on senior analyst in technology

Makes maximum use of resources

available at the firm

Rina Shea

STRENGTHS
Good technological expertise

Well versed with organization culture

Continuous improvement

Introvert and less assertive

demonstrated in work
OPPORTUNITIES
Fast adaptability to changing

Not recognised by II
THREATS
Mistake prone

atmosphere.

Higher management not willing to

Growing experience in industry.

group

accept her as a replacement.

Analysis of Critical Factors:Critical Factor Gerald Baum David

Hughes
Ability to build
High
relations with
(regarded as
Sales force,
star in
Moderate
traders and buy
industry,
side
which makes
this easy)
Willingness to
work in teams
and guide
Low
Moderate
junior analysts
Access to upper Low
management in
companies

High

Sonia
Meetha

Seth
Horkum

Reena Shea

Moderate

High

Moderate

High

Moderate

High

Low

Moderate

Moderate (as
higher mgmt.
did not want
her to be
Senior Analyst
but she had

good rapport
with middle
mgmt.)
Industry
knowledge
Institutional
Investor
rankings
Client
orientation
(sales skills,
willingness to
travel,
accessibility)
Writing of
Reports
Stock Selection
Industry
Connections

High

Very High

Moderate

Moderate

High

Low

High

Moderate

Moderate

Low

Low

Moderate

Moderate
(Not willing
to travel)

Very
High

Moderate

High

High

Very High

High

Moderate

High

High

Moderate

High

Moderate

Moderate

High

Moderate

High

Low

Options:

Replace Peter by another candidate from the 4 external candidates available.

Retain Reena as a senior analyst permanently

Analysis:
After weighing in the pros & cons of hiring various candidates, we feel that David
Hughes & Seth Horkum are the most appropriate candidates for the position of Senior Analyst.
Gerald could have been a good choice but he doesnt fit well with the culture of RSH.
Reena Shea seems to be inexperienced for the position. Stephen is right in considering her for the
senior analyst position of a smaller industry. This will give her the exposure & the confidence to
take on future leadership roles in the organization.

Out of Seth & David, Seth seems to be a better choice, though Davids experience cannot be
discounted. But if long term prospects of the organization are to be taken into consideration then
hiring a younger talent would prove to be more beneficial. RSHs platform could propel Seth to
star rankings & make him a loyal asset for the company. Thus in our view Seth should be offered
the Senior Analyst position for the semiconductor industry. Besides that below are the lists of
advantages of Seth compared to other competitors:

He is very punctual (arrived before stephen)

Covered the major stocks at Jeffersons (his old company)
He was motivated, dedicated to his work
Client oriented
Relationships with the top management
Loyal(stayed at his old firm for almost 15 years)
He did not ask for compensation
He was interested to know about RSH
Second runner up because of his stocks

Question 2
Why Rina the junior analyst should or should not be chosen to replace Peter as the senior
analyst of RSH?
The reasons why Rina is not chosen to replace Peter as the senior analyst is:
1. Junior analyst
- Rina is still new working with RSH company. Rina had worked at RSH for a little over
three years.
2. Unexperienced
- Three years of working is still considered as new in an investment industry. Thus, she still
lack of experience in handling a critical position as senior analysts.

3. Did not have any contacts with the top management of different companies.
- Before working with RSH company, Rina is working at Win412 Company, which is a top
technology firm in California. The environment at Win412 was extremely relaxed which
caused Rina, an introvert person facing a difficult time fitting in with her coworkers and
often kept her distance from them. Thus, Rina lacks of contacts with the top management
of different companies even though she is good in her job.

4. Stephen was not satisfied with her.

- Because of her inability to make contact with coworkers and top management of other
companies makes Stephen is not satisfied with Rina. If he appointed Rina as a senior
analyst, the company will facing difficulties in getting or having new potential projects.
5. She mostly rely on the advices of senior analysts.
- Newbie in the investment industry create difficulty for her in making decision. Thus, she
is fully rely to her senior analysts.
6. She was not recognised in the ranking of institutional investors magazine
- Being recognized in the investment industry is very important in order to attract
customers confident to their organization. Because of that, Rina is not suitable yet for
this position.
7. She had no experience in stock picking.
- Senior analyst is a critical job as person should have the specialty in stock picking. With
no experience and knowledge in this stock picking, she is not suitable to be selected as a
senior analyst.