Management
THE MERGE OF OMAN BANK AND HSBC
Introduction:
The year 2012 was historical for the Sultanate of Oman, as HSBC bank’s operations in Oman, represented by HSBC Middle East Ltd, and joined forces with Oman International Bank to become a major player in Oman’s evolving banking sector. The merger was completed in June 2012 and the new entity, HSBC Bank Oman SAOG, was born, bringing with it a wealth of knowledge and experience. (Muscat Daily, June 3, 2012, p-2)
Let us analyse what were strategic capabilities of HSBC and OIB which made it viable for the merger and whether the objectives of the merger were achieved. If not, what strategy the merged entity should adopt to derive the intended benefits of the merger.
The objective of this assignment is to study and analyse strategic capability of HSBC and OIB. and evaluate the change of management style after the merge of both banks.
Analyses Strategic Capabilities of HSBC and OIB:
OIB, established in year 1979, and in year 2012 bank agreed to merge with HSBC bank. After this merger the new bank will be most strong bank in Oman banking market financially having good number of customer base.
HSBC has also been a key part of Oman banking history. Operating since 1948, it was the only bank in the sultanate for almost two decades and played a pivotal role in the first issue of the Omani currency. HSBC Bank Middle East remains the oldest and largest foreign bank in the country, but was limited in its reach with only 6 branches and a low customer base. However, it had certain positive strategic capabilities like innovative products, latest technology and global reach. (www.hsbc.co.om)
As far as HSBC is concerned, it had innovative products and latest technology it did not have good market share and physical presence. The merger provided HSBC Group with opportunity to increase scale and commitment to Oman by giving access to a strong branch network. It also complemented for its strategy of positioning its growth in
Introduction:
The year 2012 was historical for the Sultanate of Oman, as HSBC bank’s operations in Oman, represented by HSBC Middle East Ltd, and joined forces with Oman International Bank to become a major player in Oman’s evolving banking sector. The merger was completed in June 2012 and the new entity, HSBC Bank Oman SAOG, was born, bringing with it a wealth of knowledge and experience. (Muscat Daily, June 3, 2012, p-2)
Let us analyse what were strategic capabilities of HSBC and OIB which made it viable for the merger and whether the objectives of the merger were achieved. If not, what strategy the merged entity should adopt to derive the intended benefits of the merger.
The objective of this assignment is to study and analyse strategic capability of HSBC and OIB. and evaluate the change of management style after the merge of both banks.
Analyses Strategic Capabilities of HSBC and OIB:
OIB, established in year 1979, and in year 2012 bank agreed to merge with HSBC bank. After this merger the new bank will be most strong bank in Oman banking market financially having good number of customer base.
HSBC has also been a key part of Oman banking history. Operating since 1948, it was the only bank in the sultanate for almost two decades and played a pivotal role in the first issue of the Omani currency. HSBC Bank Middle East remains the oldest and largest foreign bank in the country, but was limited in its reach with only 6 branches and a low customer base. However, it had certain positive strategic capabilities like innovative products, latest technology and global reach. (www.hsbc.co.om)
As far as HSBC is concerned, it had innovative products and latest technology it did not have good market share and physical presence. The merger provided HSBC Group with opportunity to increase scale and commitment to Oman by giving access to a strong branch network. It also complemented for its strategy of positioning its growth in
References: 1. (Muscat Daily, 2012) [Online] URL: http://www.muscatdaily.com page-2 [Date Visited: 03.12.2013] 2. (HSBC Oman SAOG, 2012) [Online] URL: http://www.hsbc.co.om, Annual Report 2012 p-2 [ Date Visited: 03.12.2013] 3. (CBO Oman, 2011) [Online] URL: http://www.cbo.gov.om, Analysis of Annual Reports of Central Bank of Oman for the years 2009, 2010 and 2011. [Date Visited: 03.12.2013] 4. (Oman Economic Review, 2012), [Online] URL: http://issuu.com/aeronline [Date Visited: 03.12.2013]