Chemical Bank : Implementing the Balanced Scorecard Submitted By : Group 12 KUSHAL KISLAY FT151093 MEHUL JAIN FT152088 SIDDHARTHA PAUL FT154003 VIVEK KHATTAR FT154063 JAYANTH SATHEESH FT152025 Background • Chemical Banking Corporation was performing a radical organizational transformation into a marketfocused and customer-focused organization after the 1991 merger with the Manufacturers Hanover Corporation. • Shift its image from a narrow provider of traditional financial services to a broader
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Chemical Banks – Allocation of Profits Question 1. How will you resolve the due bill controversy? Due Bill Controversy: Metro Division’s service to sell the Due Bill for the Treasury division is not recognized by the Treasury department. While Metro acted like a cost center‚ Treasury acted as profit center. When Metro Bank division reviewed the profit loss statement for the Due Bills‚ it was found that Metro division was incurring loss of $26.50 for each transaction. Consequences of Due
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Case 1: Chemical Bank: Implementing the Balanced Scorecard see page 233-252 Questions for the case: 1. What does Mike Hegarty want to accomplish with the BSC ? 2. Comment on the BSC implementation at Chemical’s Retail Bank ? 3. What pitfalls need to be avoided for a successful BSC project? Balanced Scorecard Implementation Pitfalls to Avoid There are many Balanced Scorecard implementations where companies don ’t seem to get all the benefits described above. Research and experience have
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Harvard Business School CHEMICAL BANK Allocation of profits Chemical Bank Sixth Largest U.S. commercial bank in 1983 With 20‚000 employees Having $ 46.9 billion in assets Offered a broad range of financial services throughout the world. Major Profit centres Chemical Bank Personal and Banking Services group World banking Group Treasury Group Areas involved in Due bills controversy Personal and Banking Services group Metropolita n Division Trust and Investment Division Treasury Group
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How a bank makes profit-an interesting primer by vinayak date. ‘Trust’ bank has opened 10 branches and has become operational on 1/4/2009.on 31/3/2010 it has total deposits of rs 1000 crores. Equity capital of rs. 100 crores divided in 10 crore shares of rs. 10 each. Given this basic data let us try working out basic parameters of banks business ‚ with certain assumptions‚ to keep things simple. Cost of funds----- Analysis of Deposit mix-4o% casa deposits. Of which 25%savings deposits
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heavily indebted to all my friends and the bank managers who took part in the survey that formed part of this project for their invaluable contributions. I can never be thankful enough to the Almighty for my life and all the blessings‚ love‚ care‚ protection‚ guidance‚ inspiration‚ and good health. God‚ I will hold onto the promises! ii Abstract As the financial sector recovers from the turbulence of the 2003-2004 financial crisis‚ commercial banks are confronted with a major dilemma emanating
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The Role of Banks and Capital Markets in resource allocation between surplus and deficit units in an economy. By: Adetokunbo Olu. Aofolaju Introduction The issue of how scarce societal resource should be apportioned to different uses has always remained the central focus of economics. Given that the wants of a society are insatiable‚ the policy thrust of managers of any economy is establishing an appropriate framework for ensuring the deployment of resources to areas of needs that ultimately increases
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Are Huge Profits of Investment Banks Justified? Investment banks are the financial institutes‚ that attract the capital for the large companies and governments on the global financial market‚ provide consulting services during buying and selling business‚ as well as provide the brokerage services. Being the leading mediator at the trading stocks and bonds‚ derivatives‚ currencies and raw materials‚ the investment banks also release analytical reports on all markets operated by it
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CHEMICAL BANK - Allocation of Profits EXECUTIVE SUMMARY The overall profitability of Chemical Bank has been negatively affected by a decrease in profit contribution from Due Bills. There is an external threat of reduced interest rates and internal threats in the form of misalignment between involved divisions. The following suggestions aim to counteract this development 1. Increasing sales volumes of Due Bills a. Allocate 100% of profits from customer fees to Metro b. Aligning Metro’s
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PEOPLE‚ SERVICE‚ AND PROFIT AT JYSKE BANK The Jyske Bank Group is managed and operated as a business. At the same time‚ we attach great importance to treating our three groups of stakeholders-shareholders‚ customers and employees-with equal respect. This is illustrated by three equally big overlapping circles which must remain in perfect balance. If the balance shifts in favor of one or two of the groups‚ this will be to the long-term detriment of all the groups.
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