An Examination Of Bank Merger Activity Strategic Framework Content Analysis
- Topics:
- Mergers
- Tags:
- Analysis,
- Strategy,
- Porter Five Forces,
- Mergers & Acquisitions,
- Merger,
- Management,
- Investment,
- Financial Services,
- Finance,
- Banking,
- ...
- Source:
- University of North Florida
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Overview: Over the last decade, bank mergers and acquisitions have been occurring at an unprecedented rate. The purpose of this study is to determine the underlying and driving forces or causation based upon examination of resent banking merger activity. The coding scheme adopted for this content analysis was conceptualized in the Porter strategic model (Porter, 1980) as operationalized in a “fishbone” analysis framework (Nolan, Norton & Company, 1986). This approach utilizing the Porter Model worked well in determining the rationale behind the merger/acquisition activity for the banking industry. For the period examined, there are four main paths identified that explain the reasons behind the mergers/acquisitions activity. These four paths are related to (1) creating economies of scales, (2) expanding geographically, (3) increasing the combined capital base (size) and product offerings, and (4) gaining market power.
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Format: WORD | Date: Jan 2003 | Pages: 5
