During his 10 years in office, the president and chief executive officer (CEO) of CIBC Mellon presided over a sharp increase in joint ownership, Toronto asset servicing business CIBC and Bank of New York Mellon Corporation (BNY Mellon). In mid-September 2008, the General Director witnessed the onset of the worst financial crisis since the Great Depression. Impending collapse of several major firms threatened affect all players in the financial services industry worldwide. Although the joint venture (JV) were rare in the financial sector, General Manager believes that CIBC Mellon JV unique opportunity to confront loss related to the financial crisis. Two important issues of the executive management of the joint venture. First, they need to discuss how best to manage virtually any risk faced by SP as a consequence of the financial crisis. As a politician and techniques developed over the last decade to be used to support the joint venture on a broad financial crisis? Second, they need to continue discussions on the strategic direction of processing options CIBC Mellon, so that the joint venture can emerge from the financial crisis, even on a solid foundation. This case is designed to provide an example of best practice in the creation of joint ventures. There is a school of thought in the scientific community, which suggests that the joint venture is less profitable than subsidiaries, is a transitional form of organization, it is very difficult to control, and the vehicle, which can lead to loss of a single technology. CIBC Mellon joint venture provides a counterpoint. It has been quite profitable and stable, has not resulted in BNY Mellon loses contribute technology, and senior management failed to effectively manage the operations.
The second purpose is to emphasize the importance of paying attention to the details in the design and management of the joint venture, because, at the time of a real crisis, you will surely find out the main problems exist. Carefully considering these details, greatly increases the chances that he will survive. Some joint ventures will never pass such a test of their stability. The case can be used in the second half of the strategic management course or in the course of joint strategies. "Hide
by Paul Beamish, Michael Sartor Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: October 08, 2010. Prod. #: 910M91-PDF-ENG
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