Best Practice Benchmarking in Financial Services

This article summarises a wider report on the current state of best practice benchmarking in UK and US commercial banking.Banks, competition, IT innovation

GlaxoSmithKline: A merger too far?

This teaching case study summarises events leading to the creation of a global pharmaceutical giant and the early years of its performance while inviting readers to consider the process of growth through mergers and acquisitions as a general strategy. The case also looks at the expectations, deliberations and motivation of managers and stakeholders in doing so. The case invites readers to reflect on whether more mergers are to be the future of GlaxoSmithKline.

GSK - A CASE STUDY ON THE STRATEGY OF “MERGER OF EQUALS” IN ETHICAL PHARMACEUTICALS

This case summarises events leading to the creation of a global giant. The merger of Glaxo Wellcome and SmithKline Beecham had implications that went beyond the UK, where both companies were domiciled. The new company sought to take residence in the US but anti-trust authorities kept the companies formally apart for more than a year as they examined every aspect of the deal. The case invites readers to consider the process of integration as a general strategy, as well as the expectations, deliberations and motivation of managers and shareholders in doing so.

COMPETITIVE EFFECTS OF IT INNOVATION ON BANK STRATEGY, 1985-1995

Through case study research this paper illustrates opportunities presented by IT-based technological change in British retail bank markets (1985-1995). For the managers of the Royal Bank of Scotland IT appeared to lower entry barriers, exit barriers and deliver high sustainability of competitive advantage. The strategic intent behind diversification patterns of the Royal Bank of Scotland suggested competitive considerations were at a premium because unsolicited take-over bids in the early 1980s put pressure on managers to create growth opportunities. Direct Line Insurance was a subsidiary from the Royal Bank of Scotland. Direct Line was also the first retail finance institution to establish a clear competitive advantage based on information technology. The success of Direct Line enabled an increase in the market share of British retail financial services of The Royal Bank of Scotland. Direct Line is a case of planned success that questions the extent to which banks’ competencies must change to master alternative delivery channels. The success of Direct Line also suggested more effective execution than other activities explored by managers of the Royal Bank of Scotland.Financial institutions; technological change; corporate strategy

The emergence and growth of US-style business education in Mexico (1955-2005)

Structured Abstract Purpose - This article contributes to efforts documenting the incursion of Anglo-American capitalism into Latin America by looking at the emergence and development of graduate and postgraduate business education in Mexico. Design/methodology/approach - Archival research (including current writings) combines with unstructured interviews and a database of teaching case studies. The database considers teaching case studies looking at multinational companies working in Mexico and cases focusing on Mexican companies. Findings – The emergence of graduate degrees in management during the 1950s and 1960s mirrors a move to a more hierarchical structure of family businesses. The emergence of postgraduate business education in the 1960s reflects the existence of a large group of salaried managers. Between 1948 and 1997, teaching case studies overwhelmingly sought to help US managers doing business in Mexico. Since then a significantly greater number of Mexican business experiences have been documented, suggesting a greater effort to link indigenous businesses with trends in global companies. Originality/value – Contribute to a better understanding of the interaction between multinationals, indigenous businesses and management education in emerging markets. Paper type - Empirical.master’s in management, case method, business schools, family businesses, multinationals, Mexico, USA

Barclaycard: Still the King of Pla$tic?

This teaching case study looks at milestones in the UK credit card market. It then focuses on how a long-standing market leader maintains a position of advantage and develops its business in a fast-moving industry undergoing significant change. There are many different strategic options open to Barclaycard, but which will be most suitable? Will all the options be acceptable, not only in terms of the likely risk and returns but also to the major stakeholders? Will the options be feasible? The case invites readers to evaluate and compare a range of strategic options and to choose the best way forward for Barclaycard.Banks, credit cards, corporate strategy

Introduction to Trade Finance

Distance learning text to help carreer bankers. Individual text available upon request from corresponding author.

Automation and Management Accounting in British Manufacturing and Retail Financial Services, 1945-1968

This article looks at the effects of office mechanisation in greater detail by describing data processing innovations in major building societies during the dawn of the computer era. Reference to similar developments in clearing banks, industrial and computer organisations provides evidence as to the common experience in the computerisation of firms in the post-war years. As a result, research in this article offers a comparison between widespread technological change and changes unique to service sector organisations. Moreover, research in this article ascertains the extent to which the adoption of computer-related innovations in financial services sought to satisfy financial, rather than management accounting, purposes.banks, building societies, manufacturing, computers

Accounting Regulation and Management Discretion in a British Building Society, Circa 1960

This article explores the manipulation of published financial reports in order to counter the potentially unfavourable impact of newly introduced regulation. In this case the reported capital ratio of a major building society was enhanced using a sale and leaseback transaction with a related party and a change in depreciation policy, methods which reflected limited alternatives. Analysis of the case is set in the context of the mid-term performance of the building society sector and addresses the questions of whether the manipulations involved were within then-prevailing generally accepted accounting principles and why, despite disclosure in the society’s financial statements, these failed to attract public comment or concern, regulatory action or an audit qualification. In examining a major British mutual financial organisation we depart from traditional analyses of managerial discretion in accounting choices in manufacturing, mining and transport companies prior to the watershed Companies Act 1948.Accounting manipulation; Creative accounting; Sale and leaseback; Depreciation; Building societies; United Kingdom