Macquarie Group

By: Mahmut A. Resuloğlu, Alka Group: Corporate Quest

Sharma, Wasutha Aj, Sameer Bhatia
and Zih Siou, Syu
 Presentation Outline
Macquarie History:
– How it all started
– Why we chose Macquarie Group
– Past achievements

Redesign and Reengineering:

– Building blocks for Corporate Venturing
– Macquarie corporation and its environment
– Seven Perspectives on the nature of entrepreneurship
– Corporate Entrepreneurship and the Organizational Life Cycle
– Three main challenges of entrepreneurship
– Entrepreneurship within Macquarie Group

Impact of workforce rearrangement on Macquarie Group:

– Positive and Negative impacts on the workforce
– Restructuring of work design
– Management of internal changes

Comparing Macquarie’s Corporate Entrepreneurship to Max

Muir
 Macquarie Group History

How it all started:

• Macquarie takes its origins from the merchant bank Hill Samuel Australia
(HSA), a wholly-owned subsidiary of Hill Samuel &Co. Limited, London.
• Established in Australia in 1969, and it began operations in Sydney in
January 1970 with only three staff.
• In 1981, due to deregulation of financial markets, HSA commenced work on
a proposal to become a trading bank. Authority for HSA to become
Macquarie Bank Limited (MBL) was received from the Federal Treasurer on
February 28th 1985,
• In 2009 Macquarie Group has grown and offers a diverse range of banking,
financial, advisory, investment services as well as corporate ventures in the
field of infrastructure and airports.
• The Macquarie group has underlined major financial innovations, which
have underpinned its reputation as a market leader as well as a reputation
in infrastructure and airport building internationally.
 Achievements
Current Performance
•The Macquarie group acquisitions speak for it self in terms of performance:

•Just a few days ago, the Macquarie group has acquired Delaware Investment Leading
US diversified asset management firm with over $US125 billion in assets under
management.

•Acquisition provides Macquarie with a highly regarded team of investment

management professionals, attractive product suite and broader access to the world's
largest capital market

•Acquisition is consistent with Macquarie's strategy to develop a global asset

management capability

•Another acquisition which is note taking is the acquisition of acquire global energy
advisory firm, Tristone Capital Global Inc.

•The acquisition will improve Macquarie's energy offering by integrating Tristone’s

energy advisory and capital markets capabilities.
Creating the Entrepreneurial Organization
 Nature of Entrepreneurship

How did Macquarie redesign their entrepreneurship perspective in their new

corporate ventures ?

Creation of Wealth
• Objective approach
• Exclusive access
• Global opportunities
Creation of Enterprise
• Working closly with government to deliver transport, roads, airports and
utilities.
Creation of Innovation
• Macquarie Group Foundation invests $2 million in Social Innovation
 Nature of Entrepreneurship
How did Macquarie redesign their entrepreneurship perspective in their new
corporate ventures ?

Creation of Change
• Climate Change Investments
• sourcing investments across renewable technologies
• Macquarie BioCarbon
• Investing in the reduction of greenhouse gases
• Environmental product trading
Creation of Employment
• Recruited 2,321 new staff in 2005, up 72% on 2004
• Australia -Ranked as the highest volume corporate employment advertiser
• Employees at all levels are rewarded for the opportunities they create, the
contributions they make, and the value they add for clients, customers and
shareholders.
 Nature of Entrepreneurship

How did Macquarie redesign their entrepreneurship perspective in their new

corporate ventures ?

Creation of Value:
• Management is focused upon creation of ‘value-add’ up selling
opportunities and new revenue streams.

Creation of Growth:
• Macquarie’s growth strategy is to expand selectively, seeking only to enter
markets where we perceive there is a genuine opportunity to add real
value.
 The Challenge for Macquarie
Achieving credibility or legitimacy for the concept and the entrepreneurial
team:
•Proposal Plan
•Ideas and Development
•Industry Law

Obtaining resources:
•Finance and Capital

Overcoming inertia and resistance:

•Offer profitability to shareholders
•Human capital (extending the business into other areas)
•International strategic alliance
 Entrepreneurship within
Macquarie
How does Macquarie achieve Corporate Entrepreneurship ?

Traditional Research and Development:

• Innovation

New Venture Divisions or Groups:

• Innovation to facilitate corporate entrepreneurship
• Provide an adequate structural context for new venture activities
• Create a process for determining the strategic context on new ventures.
Acquisitions:
• 2004: Agreement with ING Group (ING) to acquire 100 per cent.
• 2006: Unsuccessful acquisition proposal of Qantas
• 2007: Orion Securities
• 2009: Delaware investment $428 million in cash, continuing a trend in
consolidation in the fund management business.
 Impact on the Workforce
Corporate Venturing and changes to the employee roles:

Macquarie Groups core ideology provides the glue that holds the whole
organization together as it grows, diversifies and expands globally..!!
 Impact on the Workforce
POSITIVE implications of change on the workforce:
•Maquarie Group has continued to recruit motivate and
reward high quality people

•Acquisition with six new business has resulted in growth

in high profile teams and individual.

•Its enterprising environment offers employees the

freedom to make their mark with their team, clients,
customers, the Bank and their industry.
 Impact on the Workforce
POSITIVE implications of change on the workforce:
•Diversified workforce not only allows the manager to
make better choice. It also enable the organisation to
market untapped minority market

•An increase in employees wellness & development is

most noticeable positive impacts reported.

•Maquarie is a decentralised form of organization so it is

easily approachable by employees.
 Impact on the Workforce
NEGATIVE implications of change on the workforce:
•Maquarie became diversified through acquisitions and
start-up enterprises they often took on unrelated business
ventures.
•International expansion have added to the complexity of
problems in organization.

•As organization grew,so did the number of managers

where it often became more than that can be supported by
condition.
 Internal management of changes
How does Macquarie maintain a successful employment force?

Macquarie Groups employment concept regardless of new ventures..

 Key to Successfull Workforce
How does Macquarie maintain a successful employment force?

Fulfilment for our People:

• Macquarie seeks to recruit the best people without discrimination or
bias and advancement and remuneration are based solely on merits.

Teamwork:
• To better serve our clients, Macquarie is organised into individual
separate businesses

Highest Standards:
• Superior returns are only achieved through the best work, which
requires excellence, innovation and creativity.
 Comparing Macquarie’s Corporate
Entrepreneurship to Max Muir Case Study

Corporate Entrepreneurship vs Individual Entrepreneur

• In comparison, let’s take the example of Max Muir. One of the ways of staying in the
business was the acquisitions of a number of competitors within the same field.
• Max Muir emphasizes strong personal networks to maintain strong relationships with his
clients.
• In comparison with the Macquarie group, we can see that how the Macquarie group
acquires different firms in different fields and not just the banking and finance sector, with
these ventures it creates new venture divisions and groups.

• Acquiring new ventures in Toll roads, pipelines and waterworks, leads to expertise in the
management and control in these fields. In roads, it has a head start since Australia
privatised its toll roads more than 15yrs ago. Europe and America have just started around
4-5 years back.

• With they acquire expertise,it gives an edge to the company against its competitors, and
with its huge financial background, it becomes a tough competitor and eventually tends to
overshadow its competitors in any field it ventures into.
 The End

Presented
By
Group Corporate Quest