Merger: Bank and Strategic Planning Essay

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Name: Wendong Rui (Paul)
Executive Summary
This Executive Summary discusses integration part of the merger between Swiss Bank Corporation (SBC) and Union Bank of Switzerland (ex-UBS) during 1997 and 1998. More specifically, it emphasizes strategic planning, integration execution among different functions of both parties, and management structure.
2. Integration
2.1 Strategic Planning
It is crucial to have a thorough and thoughtful due diligence before any merger. Based on the analysis of culture, strengths of two firms, leadership and financials, the strategic planning will give both insiders and outsiders the vision and guideline of the integration. In the presentation conducted by the CEOs of ex-UBS and SBC, it outlined strategies for integration that varied across main divisions based on the best practice of individual divisions. It also outlined the timeframe and milestones to box the process.
2.2 Execution
Implementation of the integration is a complex and dynamic system that requires communication, calibration, speed and determination. Michael Sweeney outlined 14 maxims for successful implementation and 7 sins to avoid. These are good principles to follow in general. Because of the relatively independent multifunction nature of two banks, it was important to have different plans for each function.
Consumer and Corporate Banking was one of the most heavily viewed segments. While Synergistic cost saving is sizable, layoffs would be greatest here. Given the client relationship banking culture, culture change would be substantial. The challenge ahead for integration was the gradual decline of commercial banking and the rise of global focus. Stephan Haeringer was appointed as head based on his ex-UBS experience and capacity.
The integration of investment

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