NORTHERN BANK ACQUISITION

NORTHERN BANK ACQUISITION

Abstract

The report highlights the different perspectives of the integration of the Northern and Southern banks for better business growth and for high revenues. The report focuses on the initial decision that is taken by the higher authorities of both banks for higher performance output.

The main focus in on the ideal governance framework which is best suited for both the two banks after merging. The report also highlights the different recommendations for the individual two banks for better business activities in all respects. The main aim of this report is to meet the shareholder’s expectations for better business growth in the future era

1. Introduction

The Southern bank will be merged with the Northern bank for the benefit of their business growth and to overcome the threats related to the stakeholder’s behaviors. The report focuses on the governance framework and evaluates the stakeholder’s expectations and behaviors from the bank. For the merging of the two banks, the working environment is changed for resolving the issues related to customer satisfaction.

This can help to encourage the target audience for several transactions with these two banks. The main aim of the report is to focus on how the integration of the two banks helps the different stakeholders’ expectations with organizational change management.

2. Overview of the Northern Bank

The Northern bank is a famous multinational bank in the United State with a capacity of 1500 employees. The bank has become the most popular commercial bank in the United States for the last three decades. The bank has 2589 branches in all the different regions of the United States with revenue of 29 dollars billion in the last financial year.

The bank offers various tools and technologies regarding the credit card facility, debit card facility and net banking which will attract the target audience in all respect. In the modern era, the bank merges with the Southern bank for gaining different kind of facility regarding the stakeholder’s issues, tempt the maximum target audience for the benefit of the two banks.

The Northern bank may facilitate different kinds of problems regarding the technological problem, infrastructure issues, human resource problem which can be modified after the integration with the Southern bank.

The main shareholders of Northern bank are the government of the United State, Mutual funds, different banks, and insurance companies. As stated by Hector Rice, the hr director of Northern bank that the need for improvement in the security field must be entertained for better customer service.

There are different kinds of challenges that can be resolved with effective integration with the Southern Bank. The different types of internal and external shareholders’ investment can enhance the business growth of the Northern Bank which may be solved by the strong work policies of the Southern bank.

3. Overview of the Southern Bank

The Southern bank is also a renowned bank in the United States with 3200 employees in different branches. The bank has overall 1258 branches all over the region of the United States with 38 billion dollars in the last financial year. Moreover, the bank has a three-tier organizational structure with the head office in California.

The bank offers different kinds of rules and regulations for the strong implementation of working policies and ethics. In the modern era, the Southern bank faces some kind of challenges regarding poor data warehousing and data mining. This will help to advance the management information system of the bank with modern technology.

The Southern bank has also faced an issue related to the lack of a legal framework for electronic banking with the need to be resolved. For this reason, the merging is needed for the advancement of the business growth of the individual two banks.

This will help to improve the governance framework of the bank for a better experience of the different shareholders. The important shareholders of this bank are Sue Beckerman, Nick Liang, Tina Yoshiro, Elaine Murphy who can help to increase the overall revenues of the bank. The integration of the two banks is essential for the Southern bank for the effective growth and the overall profit of the bank.

This can encourage customer service and quality banking services for the overall improvement of the banking industry in the United State. The Southern bank recently accepts the terms and conditions of the Northern bank for betterment in their business policy.

NORTHERN BANK ACQUISITION

3. Analyze of the initial decision of the consultation periods

From the starting of the last year, the board of directors of the two banks has decided to merge the Northern and Southern banks for the overall business growth. The board of directors has decided on the integration of the two banks to overcome the threats from the eastern and western banks.

As argued by Noe et al, (2017), this can help the two banks to attract the maximum target audience which can help the overall revenues of the two merged banks. The higher authority has decided to focus on the integration plan and different clauses which may be considered by the different internal and external shareholders of the two banks.

The need for integration is necessary for geographical coverage of the individual customers all over the United States. This can help the target audience for better communicating with the bank for different queries.

The initial decision is influenced by the merging decision of the eastern and western bank which needs to be focused on the better improvement of the bank. In the influence of Stark (2015), the negotiation is the fundamental process of the integration plan where Southern bank wants to buy the stocks and shares of the Northern Bank.

This can have a hugely adverse effect on the financial growth of the Southern bank which can also violate the economic status of the Northern bank. As per the view of Sardemann et al, (2018), the agreement will consist of the approval of the different shareholders for the different transactions of the Northern and the Southern bank. The initial decision that is taken by the

 

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