Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Topics:
Royal Banks of Scotland's growth strategies; Inorganic and organic growth; Mergers & acquisitions (M&A); Citizens, Charter One; Competitive strategy; Credit card provider; National Bank of Scotland; Investment and retail banking; Restructuring, cost saving; Change management; British banking industry; Merchant banking; NatWest Bank takeover; Interest rates, Bank of England; Alliances and joint ventures
Abstract
The RBS (Royal Bank of Scotland) banked primarily on acquisitions to stand as the fifth largest bank in the world in June 2004. The case study focuses on the realisation of ''inorganic growth'' besides ''organic growth'' by RBS to create a global presence. The case discussion could revolve around the need to diversify and innovate, and how acquisitions could be used to reap benefits. Also, how the competitive pressures and stubborn cost structures can heighten the incentives for risk taking, with a high probability of the alleged benefits of merging, for banks profitability, often getting reversed.
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Abstract
The RBS (Royal Bank of Scotland) banked primarily on acquisitions to stand as the fifth largest bank in the world in June 2004. The case study focuses on the realisation of ''inorganic growth'' besides ''organic growth'' by RBS to create a global presence. The case discussion could revolve around the need to diversify and innovate, and how acquisitions could be used to reap benefits. Also, how the competitive pressures and stubborn cost structures can heighten the incentives for risk taking, with a high probability of the alleged benefits of merging, for banks profitability, often getting reversed.