Philip Anderson Case Study

Philip Anderson
Philip Anderson has been the branch manager of the Phoenix location for Stuart & Co brokerage firm for 21 years. Phil started his sales career as soon as he finished college, receiving his first job as a salesman with a cereal producer. Two years later, Bill switched careers to a brokerage firm and has been in the brokerage industry ever since. Phil believed “his job was to develop and nurture profitable relationships with as many clients as possible, and the specific products and services sold to clients should be dictated by the needs of those clients” (Merchant & Van der Stede, 2012). Phil had the largest branch when it came to clients, sales volume, and net profit, however, his annual bonus trailed behind other
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When Phil joined Stuart & Co, they “emphasized the development of long-term client relationships based upon rendering expert independent financial advice” (Merchant & Van der Stede, 2012). They prided themselves on having financial advisors that were trusted counselors to their clients in all financial situations. However, that has since changed. Stuart & Co began to push branch managers to pursue clients towards specific products and services, even if it was not within their best financial interest. These changes posed a risk for Phil and his clients. Phil felt they risked losing many long-term clients by persuading them in unnecessary directions, possibly causing them future financial…show more content…
When reviewing the table, option B is the best option to provide the highest profit to Stuart & Co. Option B has the highest management fees, which go directly to Stuart & Co. In addition, option B also has the highest load and commission.
The ultimate goal of any company is to earn a maximum profit. In this case, from the viewpoint of Stuart & Co, Phil is acting ethically. Stuart & Co believes Phil is acting ethically because maximizing the profits is their ultimate goal. In addition, Phil is not only maximizing company profits he is also earning his clients a return on their investment, therefore, they are making money. On the contrary, in the view of the clients, Phil is acting unethically. Clients trust Phil to earn them the highest return on investment. Therefore, when Phil chooses to invest in the investment showing the highest profits, this becomes an ethical issue. While Phil wants the company to earn a high profit, he also needs to be sure, his clients are earning the most money on their investments.

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