Nowadays the movement of a company abroad has become a very complex question. A business organization has to understand that the international environment has changed in the past twenty years. Today the global economy operates all around the world. There opened new, interesting markets e.g. China or Russia. The figure of international companies has risen faster as originally expected. Kotler et al (2001) argue many other industries as well as the global financial system have become more difficult to understand. According to Valdez (2000), in 1999 Deutsche Bank was ranked number one of the world’s largest banks by assets with $865bn. Today its ranked number 6, but only number 23 according to profitability. It can be said that Deutsche is an investment Bank which deals with the needs of high net worth individuals e.g. deposits, loans and investment advice. Furthermore it is one of Europe’s most powerful and successful banks. However, in 2003 Deutsche Bank has threatened to move from Germany to the United Kingdom (UK).
In 2003 The Sunday Times reported that plans exist to move from Germany either to Switzerland, USA or UK because of Germany’s anti-business culture and the complicated impractical laws. (online) Some of the international experienced managers would support the concept. An added reason given by a manager from Frankfurt (Main) headquarter is the poor performance of German companies which sounds like an excuse to move abroad. Rapid decisions are very difficult just as to be flexible. It seems that Deutsche’s manager wanted to benefit through a relocation to New York or a huge merger with a Swiss bank e.g. Credit Suisse. The BBC (online, 2003) observed one day later that Deutsche Bank has indicated the movement. (online) Although the bank has become globally it is a historically grown company with its origin in Germany.
Table of Contents
1. Movement of Companies
2. Factors Influencing Corporate Relocation
3. Deutsche Bank: Historical Development and International Strategy
4. Comparative Economic Analysis: Germany and the UK
5. Operational Structure and Global Performance
6. Conclusion
Objectives and Topics
The primary objective of this coursework is to examine the strategic motivations and challenges faced by multinational corporations when considering international relocation, using the specific case of Deutsche Bank's reported potential move from Germany to the UK as a focal point for analysis.
- Analysis of factors driving international company movement.
- Evaluation of the economic and cultural differences between Germany and the UK.
- Examination of Deutsche Bank's historical development and global strategy.
- Assessment of the importance of corporate image and performance in a competitive global market.
Excerpt from the Book
Movement of Companies
Nowadays the movement of a company abroad has become a very complex question. A business organization has to understand that the international environment has changed in the past twenty years. Today the global economy operates all around the world. There opened new, interesting markets e.g. China or Russia. The figure of international companies has risen faster as originally expected. Kotler et al (2001) argue many other industries as well as the global financial system have become more difficult to understand. According to Valdez (2000), in 1999 Deutsche Bank was ranked number one of the world’s largest banks by assets with $865bn. Today its ranked number 6, but only number 23 according to profitability. It can be said that Deutsche is an investment Bank which deals with the needs of high net worth individuals e.g. deposits, loans and investment advice. Furthermore it is one of Europe’s most powerful and successful banks. However, in 2003 Deutsche Bank has threatened to move from Germany to the United Kingdom (UK).
In 2003 The Sunday Times reported that plans exist to move from Germany either to Switzerland, USA or UK because of Germany’s anti-business culture and the complicated impractical laws. (online) Some of the international experienced managers would support the concept. An added reason given by a manager from Frankfurt (Main) headquarter is the poor performance of German companies which sounds like an excuse to move abroad. Rapid decisions are very difficult just as to be flexible. It seems that Deutsche’s manager wanted to benefit through a relocation to New York or a huge merger with a Swiss bank e.g. Credit Suisse. The BBC (online, 2003) observed one day later that Deutsche Bank has indicated the movement. (online) Although the bank has become globally it is a historically grown company with its origin in Germany.
Summary of Chapters
1. Movement of Companies: Introduces the complexity of global relocation and presents the specific case of Deutsche Bank’s 2003 threat to move from Germany.
2. Factors Influencing Corporate Relocation: Discusses the theoretical assets and drawbacks of operating in foreign markets, including language, legal, and cultural barriers.
3. Deutsche Bank: Historical Development and International Strategy: Details the history of Deutsche Bank, its expansion into London, and its modern-day focus on Central and Eastern European markets.
4. Comparative Economic Analysis: Germany and the UK: Compares the economic systems, financial structures, and linguistic advantages of Germany and the UK to highlight their different business environments.
5. Operational Structure and Global Performance: Examines the core banking services and organizational philosophy that have helped Deutsche Bank maintain its position as a global player.
6. Conclusion: Synthesizes the findings to clarify why the management chose to remain based in Germany despite the challenges of the global financial market.
Keywords
International Business Management, Deutsche Bank, Global Economy, Corporate Relocation, Financial Systems, Banking Services, Germany, United Kingdom, Investment Banking, Global Strategy, Economic Comparison, Corporate Performance, Market Expansion, Organizational Structure, Business Environment
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the complexities of international corporate movement, focusing on the strategic decisions made by multinational firms like Deutsche Bank.
What are the central themes discussed in this work?
Key themes include the challenges of global expansion, the impact of national economic systems on business, and the importance of adapting to international market requirements.
What is the primary research goal?
The goal is to determine the factors that influence a company's decision to either operate domestically or relocate to the international arena.
Which scientific methodology is applied here?
The author uses a qualitative analysis approach, relying on literature review, financial reports, and media observations to compare market conditions and corporate strategies.
What topics are covered in the main section of the paper?
The main sections cover the historical development of Deutsche Bank, a comparative analysis of German and UK economic systems, and an evaluation of the bank's core business departments.
Which keywords characterize this work?
Central terms include international business, financial markets, corporate strategy, global competitiveness, and bank management.
Why did Deutsche Bank consider relocating in 2003?
The bank faced pressure due to Germany's perceived anti-business culture and complicated regulatory environment, leading to discussions about potential moves to the UK or other markets.
How does the author view the balance between global expansion and local roots?
The author concludes that despite global operations, remaining true to the company's historical origins in Germany is a strategic asset for brand identity and reputation.
- Quote paper
- Christian Berger (Author), 2008, Movement of companies. A case study: Deutsche Bank, Munich, GRIN Verlag, https://www.grin.com/document/118133
