Chapter 6. Large Enterprise Design Study

This chapter is devoted to the study of a fictitious large European holding of banks called EuroBank. EuroBank was initially a large bank called MainBank in the United Kingdom (UK). Several years ago it acquired EnterBank, a bank in the UK that specialized in providing services to business customers. It also acquired a small insurance company called UK Insurance (UKI), which provided services for consumers and enterprises. EuroBank continued its expansion into other parts of Europe via acquisitions of local banks in Germany (GerBank) and Spain (SpainBank) that had a national branch network. Spainbank also owned two offices in Germany.

Recently, EuroBank acquired a brokerage office in New York City because of its proximity to the New York Stock Exchange. EuroBank’s presence in the U.S. is currently limited to that brokerage office, and no banking services are offered at this location. EuroBank plans to continue its expansion via internal and external growth (through acquisitions in other countries).