CIBC Mellon: Managing a Cross-Border Joint Venture Harvard Case Solution & Analysis

Throughout his 10-year period, the president along with chief executive officer (CEO) of the CIBC Mellon had presided over the spectacular expansion of the collectively owned, Toronto-based asset servicing business of CIBC and The Bank of New York Mellon Corporation (BNY Mellon). In the mid-September 2008, the CEO was observing the beginning of the worst financial crisis since the Great Depression. The forthcoming fall of several leading businesses threatened to affect all players in the financial services business world-wide. Although joint ventures (JVs) were unusual in the monetary sector, the CEO believed that the CIBC Mellon JV was distinctively positioned to resist the fallout associated with the fiscal catastrophe. Two urgent issues faced the JV's executive management team. They needed to discuss how to best handle any risks confronting the JV as a result of the monetary crisis. How could the policies and practices developed during the past decade be leveraged to sustain the JV through the more extensive fiscal disaster? They needed to continue conversations regarding choices for refining CIBC Mellon's strategic focus, so that the JV could emerge from the financial meltdown on even stronger footing. This case is meant to supply an example of best practice in joint venturing.

The CIBC Mellon JV supplies a counterpoint. It has been stable and quite lucrative, has not resulted in BNY Mellon and senior management has been able to efficiently handle operations. Another objective is to underscore the value in paying attention to the details in designing and managing a joint venture because, during an actual disaster, you will certainly find out whether significant problems exist. Carefully contemplating such details significantly enhances the chances that it will survive. Some joint ventures never pass this type of test of their resiliency. The instance can be used in a class about combined strategies, or in the latter half of a strategic management course.

PUBLICATION DATE: October 08, 2010 PRODUCT #: 910M91-PDF-ENG

This is just an excerpt. This case is aboutĀ GLOBAL BUSINESS

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