DEUTSCHE BANK Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

DEUTSCHE BANK Case Solution

The driver behind the M&A

Competition in the banking sector around the globe was increasing and Deutsche Bank had intended to reduce the competition within the sector in order achieve a competitive advantage to retain in the market. Further, the drivers are listed and explained below:

Profitability: Deutsche Bank wanted to increase the profitability of the bank through acquiring the consumer base bankers’ trust. Alongsidethat, the Deutsche Bank wanted to design an efficient operations to run smooth business in order offer better services.

Facilities & Resources: Deutsche Bank knew that the bankers’ trust had numerous many resources and facilities that Deutsche Bank can jointly use to make operations and services efficient and productive. Sharing resources can reduce the overall operational cost and achieve economies of scale.

Competitive edge: Innovation and customization in the banking sector are increasing and Deutsche Bank find it a feasible option to acquire bankers 'trust. The efficiency and combine efforts would allow Deutsche Bank to deliver customized and innovative services to the consumers.

The strategies that are subsequently deployed

The behavior issuer accrues in all stages including during the post-merger integration phase. The challenge of dealingwith clients prospects competitors existing staff and new staff. Deutsche Bank decided to acquire Bankers Trust due to its diversified marketing strategies. After the acquisition bankers trust was supposed to develop new marketing strategies that consider Deutsche Bank and generate results. Both firms shared tangible and value-creating activities to manage the activities. Both firms developed strategies to share the computer system, finances, and procurement activities. After acquisition both companies decided to manage assets jointly, invest in research & development and work jointly on expansion and growth plans.

The behavior issues that accrue in all stages including during the post-merger integration phase

After acquisition Deutsche Bank faced issues of low employee commitment, low productivity, high dissatisfaction, increasing turnover rate, and leadership issues. Along with that sabotage and dysfunctional behavior. Deutsche Bank was not able to focus on its ability to provide banking services because there was an over the burden of services. The company was unable to sustain a competitive edge in the banking service sector. Disruptive tension emerged between Deutsche Bank and bankers' trust because of the cultural differences (Olie 1994). Employees from different cultural roots had avoided changing organizational culture. These differences play a role at each stage of acquisition, from planning to post-acquisition. During the planning stage, these differences participate in delaying the decision-making and coming to one point. Sharing resources and facilities in a diverse environment is difficult because people react differently towards these changes. The acquisition process increases the stress level and many employees leave jobs due to stress. Employees of both organizations can suffer from competition. Both companies may start competition rather than working together. Employee frustration and stress levels can increase and employees do not perform. The issue of low productivity can also prevail in the market. These factors can affect the overall business performance.

The challenge of clients, competitors, existing staff, and new staff

Managing new staff would be easy because new employees would adjust to the new culture but existing employees oppose change and conflict occurs between employees of either firm (like Cartwright and Cooper 1993). There are also chances that a company can lose its clients after the acquisition because they may not believe other companies like your company. So maintaining good relations with clients is also a challenge for the companies. Acquisition shifts the company’s focus from the main objective towards the management of issues which occur post-acquisition. Retaining existing employees is also a challenge for Deutsche Bank acquisition cause dissatisfaction among existing employees and reducing their morale and motivation towards their job. For Deutsche Bank dealing with competitors would be also a challenge because internal conflicts can harm the overall business performance of the company.

Conclusion

Deutsche Bank was performing well in the banking sector and due to an increased competition and advancement in the industry; Deutsche Bank decided to acquire bankers' trust. As bankers’ trust had a good business reputation, consumer base, facilities and resources that attracted Deutsche Bank to acquire the Deutsche Bank. Banks can use and share the resources in order to reduce the overall cost of the operations and provide services to the clients. Deutsche Bank aimed to adopt innovative financial services and go for globalization to compete in the market. After the acquisition, the main challenge was to merge two different cultures, manage employees and clients. Along with that, it was important to be focused on achieving the goals......................

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