Nomura’s Global Growth Picking Up Pieces Of Lehman Harvard Case Solution & Analysis

Introduction
Nomura was founded in the year 1925 which started as a small bond house which became one of the largest independent investment bank and largest brokerage of Japan. The company started dealing in thestock exchange in the year 1961 which was listed on few of the Japan cities which are Nagoya, Osaka, and Tokyo. In the year 1994, Nomura started dealing with the Singapore stock exchange. It had established a stock exchange in the New York Stock Exchange in the year 2001which is in the form of Depository Receipts.
Nomura primary offered its services into 5 business segments and also offered avariety of its services. The 5 primary segments which it dealt with are the Retail which is the individuals and corporations of Japan, Global Markets (financial services and fixed equity), and Investment Banking (which are the corporate finances and financial advisory), Merchant Banking (private investments) and Managing the Assets (investment trusts).
There were around 15% of the employees of Nomura located outside of Japan and there were several offices established in many of the countries of Europe, Asia, and America. The company growth strategy was through mergers and acquisition like any other banking firm as they use the same strategy for expanding further. The culture of Nomura which was established in many parts was distinctly local. Nomura strategy for retaining their employees for long-term was through by offering them strong compensation and other benefits of lifetime and security.
In the year 2008 on the month of April, Kenichi Watanabe took over the control of Nomura and become the CEO. He had several experiences and a strong background which was handling the firm’s securities and was adirector, vice president and head of risk management before joining Nomura.
The Strategy of the new CEO for further expanding in the othercountries which are in Asia, Europe, and the U.S through mergers and acquisition. He hired Shibata who become the COO of Nomura banking and had strong experiences in global asset management, support function, and global investment banking.
They worked together and coordinated with each other for further improving the condition of Nomura and to also further expand the company. Both of them took several lessons through the downfall of the banking firm which is from Bear Stearns in the year 2008. The developed a new strategy for improving the condition of Nomura which is “Cleaning up” and “Reinforcing”. In which they had completely sold their bad assets which were the cleaning up part and reinforced through improving the financial structure.
Problem Statement
Nomura’s CEO and COO decided to acquire Lehman Brothers firm and many of its operations which are in Europe, Middle East, and India. The overall cost for buying out Lehman brothers and also acquiring its employees, compensation costs would be around U.S. $1.3 billion. Acquiring Lehman Brothers would pose several problems for the company as for one the labor costs would increase significantly due to fluctuation on the exchange rate and would further impact on the culture of Nomura that would cause problems with the employees and with other management challenges................

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