Comparing Nbk and Boubyan
Acquisition of Boubyan Bank
MGMT 502 – Managerial Communication
Table of Content
Abstract (Summary)
This report will look at how the National Bank of Kuwait’s acquisition of Bank Boubyan was one of the main factors which led to an increase in Bank Boubyan’s market share. This report will try to identify a critical factor which controls the market share in financial services and any initiatives taken by Bank Boubyan to improve that factor as a result of the acquisition. In addition to that research a questionnaire was sent out to assess how customer behavior has changed towards Bank Boubyan after the acquisition compared to before the acquisition.
1. Introduction 2.1. General Overview
In the business world there is a famous rule, you either grow or you die. In other words, companies in the market have to choose between growing and going bankrupt. In order for companies to grow, they have to capitalize on opportunities to increase their market share by winning over customers from their competitors. If done well, this will lead to an increase in profits enabling the company to distribute better dividends to their shareholders. On the other hand, companies that do not grow will lose their customers, market share, and decrease their shareholders value. Common methods companies can seek to improve their situation is via mergers and acquisitions. Mergers and acquisitions play their role in the economy by allowing the big and strong to grow faster through swallowing up smaller and weaker companies. Analysts consider mergers and acquisitions as part of a healthy economy. In fact there are individuals and even companies which specialize in acquisitions for nearly every market. Their main role is to monitor companies, usually those near bankruptcy, and wait for the right opportunity to buy them out. Al-Waleed Bin Talal is a famous example of someone who specializes in such tactics.
2.2. Definitions
There is a slight distinction
MGMT 502 – Managerial Communication
Table of Content
Abstract (Summary)
This report will look at how the National Bank of Kuwait’s acquisition of Bank Boubyan was one of the main factors which led to an increase in Bank Boubyan’s market share. This report will try to identify a critical factor which controls the market share in financial services and any initiatives taken by Bank Boubyan to improve that factor as a result of the acquisition. In addition to that research a questionnaire was sent out to assess how customer behavior has changed towards Bank Boubyan after the acquisition compared to before the acquisition.
1. Introduction 2.1. General Overview
In the business world there is a famous rule, you either grow or you die. In other words, companies in the market have to choose between growing and going bankrupt. In order for companies to grow, they have to capitalize on opportunities to increase their market share by winning over customers from their competitors. If done well, this will lead to an increase in profits enabling the company to distribute better dividends to their shareholders. On the other hand, companies that do not grow will lose their customers, market share, and decrease their shareholders value. Common methods companies can seek to improve their situation is via mergers and acquisitions. Mergers and acquisitions play their role in the economy by allowing the big and strong to grow faster through swallowing up smaller and weaker companies. Analysts consider mergers and acquisitions as part of a healthy economy. In fact there are individuals and even companies which specialize in acquisitions for nearly every market. Their main role is to monitor companies, usually those near bankruptcy, and wait for the right opportunity to buy them out. Al-Waleed Bin Talal is a famous example of someone who specializes in such tactics.
2.2. Definitions
There is a slight distinction
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