11-13-08 - Entrepreneurship I Class Notes JP MORGAN CASE...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Entrepreneurship I – Class Notes – 11/13/08 JP MORGAN – CASE STUDY JP Morgan – tried to monopolize Morgan formed a syndicate to provide gold coin for the firm, from which he profited, he was able to keep the U.S economy on the gold standard 1907 – famous – October – significant financial panic – The panic of 1907 – the economy is very HOT (boom) – knickerbocker trust company was trying to buy copper overextended themselves – out of funds – there was a run Morgan had to decide which institutions to save and which to let go Morgan, in his 70s, gets with the lead bankers, to come up with a fund to use to save certain institutions o They saved Trust Company of America Stopped a run there o Saved a few other institutions If Morgan was able to save these institutions, there was This led to the creation of the central bank Federal Reserve Was Morgan an entrepreneur? YES! Team: He did have a team For his resources: He had a proprietary network of individuals, connections to other individuals who were very wealthy, affluent individuals aristocrats – was able to place securities in both America He could do what commercial banks could not he acted as an investment banker He was able to provide a valuable service he helped to create an institution that did not exist before - Federal Reserve Opportunity: ?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Survival Principle: Different sizes of firms: o Small o Medium o Large Get census data on the sizes of firms look at the percentages over time of the sizes of firms for each industry If the size ratios stay the same over time, there are not many advantages to having a bigger firm o Economies of scale – big firms are able to ascertain significant market share
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern